By Mike Scarcella
(Reuters) – OpenAI has requested a federal judge in California to dismiss Elon Musk’s plea to stop the company’s transition to a for-profit entity.
OpenAI has also released a collection of emails and text messages with Musk on its website to demonstrate that he initially supported the idea of OpenAI becoming a for-profit organization before ultimately disengaging from the company due to disagreements over ownership and control.
Musk, a co-founder of OpenAI, has since founded a competing artificial intelligence company called xAI.
In August, Musk filed a lawsuit against OpenAI, CEO Sam Altman, and others, alleging that they breached contractual obligations by prioritizing profits over societal benefit in their pursuit of AI advancement. In November, he sought a preliminary injunction from U.S. District Judge Yvonne Gonzalez Rogers in Oakland to prevent OpenAI from transitioning to a for-profit structure.
A representative for Musk did not provide immediate comment on Friday.
In response, OpenAI’s blog post stated that Musk should focus on competing in the marketplace rather than in the courtroom.
Musk has extended his lawsuit to include Microsoft and others, accusing OpenAI of conspiring to sideline competitors and monopolize the generative AI market.
OpenAI refuted any claims of anti-competitive behavior and argued that Musk’s injunction request was based on unfounded allegations.
Microsoft, in a separate court filing, emphasized that it operates independently from OpenAI and engages in healthy competition within the AI market.
Originally established as a nonprofit in 2014, OpenAI has emerged as a leading figure in generative AI with substantial funding from Microsoft. In October, it concluded a $6.6 billion funding round, potentially valuing the company at $157 billion.
Meanwhile, Musk’s xAI announced raising approximately $6 billion in equity financing earlier this month.
OpenAI is in the process of restructuring its core operations into a for-profit benefit corporation, with the nonprofit entity retaining a minority stake in the for-profit venture.
Judge Rogers is set to hear arguments regarding Musk’s injunction request on January 14.