OpenAI asked a federal judge in California on Friday to deny billionaire Elon Musk’s request to block the ChatGPT maker’s transformation into a for-profit company.
OpenAI also published emails and text messages with Musk on its website stating that he initially supported a for-profit position for OpenAI to acquire a majority equity stake and full control. before walking away from the company after failure.
Musk, who co-founded OpenAI, has since launched a competing artificial intelligence company, xAI.
In November, he asked U.S. District Judge Yvonne Gonzalez Rogers in Oakland for a preliminary injunction to prevent OpenAI from converting into a for-profit structure.
Musk’s attorney did not immediately respond to a request for comment Friday.
“We should compete in the marketplace rather than in court,” Musk said in OpenAI’s blog post.
Musk has added Microsoft and others as defendants in his lawsuit, alleging that OpenAI plans to edge out rivals and monopolize the market for productive artificial intelligence.
OpenAI’s court filing denied any conspiracy to prevent AI market competition, and it said Musk’s request for a preliminary injunction was based on “unsupported allegations.”
In a separate court filing, Microsoft said Friday that it and OpenAI are “independent companies that each pursue their own strategies and compete fiercely with each other and many others.” Microsoft said
The OpenAI partnership has “promoted innovation between them and others.”
OpenAI started as a nonprofit in 2014 and became the face of generative AI through billions of dollars in funding from Microsoft. In October, it closed a $6.6 billion funding round from investors, which could value the company at $157 billion.
Earlier this month, Musk’s XAI said it had raised about $6 billion in equity financing.
OpenAI is working on a plan to restructure its core business into a for-profit corporation.
OpenAI will own a minority stake in the nonprofit company.
Rogers is scheduled to hear arguments on Musk’s injunction bid on Jan. 14.
Why should you buy our membership?
You want to be the smartest in the room.
You want access to our award-winning journalism.
You don’t want to be confused and misinformed.
Choose your subscription package