Tech billionaire Elon Musk filed a motion for a preliminary injunction against OpenAI, Microsoft Corp., and the two individuals for anticompetitive behavior. The case was docketed in the U.S. District Court for the Northern District of California. The motion levies a host of alleged illicit activities against OpenAI and its co-conspirators, including restraint of trade investment in competitors such as xAI belonging to Musk, and improperly leveraging sensitive information through ties to Microsoft to enable self-dealing transactions.
Musk, who is one of the co-founders of OpenAI, left the company in 2018 following a dispute over its direction. He held that the firm had veered off its nonprofit path to become a “capped-profit” organization in 2019 and is now converting to a for-profit company. Lawyers for Musk assert that not only does this particular conversion, in combination with acts such as making investors commit to not financing its competitors, restrain competition and violate the very tenets that OpenAI was founded on, but it also harms OpenAI itself.
The motion also highlights allegations against OpenAI CEO Sam Altman, President Greg Brockman, and others for improper dealings. For instance, Altman is accused of profiting from OpenAI’s use of Stripe, where he holds substantial financial interests. Similarly, Microsoft’s significant investments and shared resources with OpenAI are claimed to violate antitrust rules.
Musk’s legal team argues the injunction is necessary to prevent “irreparable harm,” preserve OpenAI’s nonprofit character, and safeguard public interest. They assert that OpenAI’s rapid push toward profitability might render the organization unable to pay damages if ruled against.
Despite these claims, OpenAI has dismissed Musk’s lawsuit as baseless. An OpenAI spokesperson called this Musk’s “fourth attempt” to raise “recycled and meritless complaints.” The company remains under pressure to complete its transition, as recent investor agreements hinge on the for-profit conversion within two years.
Meanwhile, Musk’s xAI has secured substantial funding, positioning itself as a competitive force in the AI sector. This legal battle reflects deeper tensions over the future of AI development and corporate governance.