Elon Musk Files Antitrust Lawsuit Against OpenAI Over Market Practices

Elon Musk is intensifying his feud with Sam Altman, claiming in a lawsuit that OpenAI is monopolizing the generative AI market at the expense of safety.

In a revised complaint filed in August, Musk raised antitrust concerns about OpenAI's transition from a non-profit founded in 2015, when he and Altman were co-founders, to a profit-driven entity backed by billions in investments from Microsoft and others.

Musk, who launched his startup xAI last year, argues that OpenAI has abandoned its original mission of benefiting humanity and prioritizing transparency and safety.

According to Musk's legal team, “Microsoft and OpenAI, seemingly dissatisfied with their near monopoly in generative AI, are now actively seeking to eliminate competitors like xAI by extorting promises from investors not to fund them.”

In October, OpenAI characterized Musk's federal lawsuit, which followed a withdrawn state lawsuit, as part of a “growing campaign to harass OpenAI for his own competitive advantage.”

The revised lawsuit includes 26 legal claims over 107 pages, up from 15 claims in the original 83-page complaint.

Musk asserts that OpenAI is becoming more anti-competitive by aggressively recruiting talent with lavish compensation offers, projecting to spend $1.5 billion on personnel for just 1,500 employees.

He also expressed concern over OpenAI's contracts with the Department of Defense and the removal of a clause prohibiting the use of its technology for high-risk activities, including weapon development.

The filing indicates that groups of safety researchers are resigning in protest or being forced out, and security teams have been dismantled to make way for personnel whose real job is to facilitate military contracting.

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