{"id":1505530,"date":"2024-12-02T14:00:00","date_gmt":"2024-12-02T19:00:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1505530"},"modified":"2024-12-02T14:00:00","modified_gmt":"2024-12-02T19:00:00","slug":"musk-pushes-again-to-block-openais-illegal-conversion-to-for-profit-model","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/musk-pushes-again-to-block-openais-illegal-conversion-to-for-profit-model\/1505530\/","title":{"rendered":"Musk Pushes Again To Block OpenAI’s “Illegal” Conversion To For-Profit Model"},"content":{"rendered":"

Musk Pushes Again To Block OpenAI’s “Illegal” Conversion To For-Profit Model<\/span><\/p>\n

\n

Authored by Brayden Lindrea via CoinTelegraph.com,<\/em><\/a><\/p>\n

Elon Musk filed another motion to block ChatGPT-creator OpenAI from converting to a for-profit enterprise, while also alleging that it has been engaging in anti-competitive practices.<\/p>\n

<\/a><\/p>\n

Musk accused OpenAI, its CEO Sam Altman, president Greg Brockman and stakeholder Microsoft of violating terms of Musk\u2019s \u201cfoundational contributions to the charity,\u201d\u00a0according<\/a>\u00a0to his motion for a preliminary injunction filed on Nov. 30.<\/p>\n

Musk co-founded OpenAI in 2015 and was an early board member until he left the company in 2018.\u00a0<\/p>\n

He has since launched xAI \u2014 the firm behind AI chatbot Grok \u2014 which he said is falling victim to OpenAI\u2019s anti-competitive practices.<\/p>\n

\u201cOpenAI\u2019s path from a non-profit to for-profit behemoth is replete with per se anticompetitive practices, flagrant breaches of its charitable mission, and rampant self-dealing,\u201d Musk\u2019s lawyers wrote.<\/p>\n

<\/a><\/p>\n

Extract from Elon Musk\u2019s motion in the US District Court Northern District of California. Source: CourtListener<\/em><\/p>\n

Through a \u201cseries of exclusive arrangements\u201d with Microsoft, the two companies have engaged in \u201cpredatory practices,\u201d enabling them to seize control of almost 70% of the generative AI market, lawyers for\u00a0Musk said<\/a>, adding:<\/p>\n

\u201cMicrosoft and OpenAI now seek to cement this dominance by cutting off competitors\u2019 access to investment capital, while continuing to benefit from years\u2019 worth of shared competitively sensitive information during generative AI\u2019s formative years.\u201d<\/strong><\/em><\/p>\n

Allowing this to continue will hurt xAI and the public, which has become increasingly concerned about \u201crushed\u201d and \u201cunsafe\u201d AI products, they added.<\/p>\n

California law allows a\u00a0nonprofit to convert<\/a>\u00a0to a for-profit stock corporation, but not to a limited liability company.<\/p>\n

OpenAI\u00a0said<\/a>\u00a0it remains nonprofit at its core but has established a for-profit subsidiary capable of issuing equity to raise capital and hire world-class talent. Still, those tasks would be administered at the direction of the nonprofit.\u00a0<\/p>\n

An injunction to preserve what is left of OpenAI\u2019s nonprofit character is the only \u201cappropriate remedy,\u201d Musk\u2019s lawyers said.<\/p>\n

\u201cNo objective observer can look at OpenAI today and say it bears any resemblance whatsoever to what it promised to be. Enough is enough.\u201d<\/strong><\/em><\/p>\n

<\/a><\/p>\n

Source:\u00a0<\/em>Elon Musk<\/em><\/a><\/p>\n

An OpenAI spokesperson slammed Musk\u2019s latest attempt in a note to Cointelegraph:<\/p>\n

\u201cElon\u2019s fourth attempt, which again recycles the same baseless complaints, continues to be utterly without merit.\u201d<\/strong><\/em><\/p>\n

In March, OpenAI\u00a0leaked<\/a>\u00a0emails from Musk in 2015 showing support for the firm to find over $1 billion in funding to compete with the likes of Google and Facebook (now Meta).<\/p>\n

OpenAI claimed\u00a0Musk was harassing the firm<\/a>\u00a0in a related October filing.<\/p>\n

\u201cSince launching a competing artificial intelligence company, xAI, Musk has been trying to leverage the judicial system for an edge. The effort should fail; Musk\u2019s complaint does not state a claim and should be dismissed,\u201d OpenAI added.<\/strong><\/em><\/p>\n

In June, Musk\u00a0threatened to ban Apple devices<\/a>\u00a0at his companies when Apple touted integrating OpenAI\u2019s ChatGPT into its iPhone, iPad and Mac operating systems. Later, Apple launched\u00a0Apple Intelligence<\/a>\u00a0on Oct. 28.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 12\/02\/2024 – 09:00<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/technology\/musk-pushes-again-block-openais-illegal-conversion-profit-model<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Musk Pushes Again To Block OpenAI’s “Illegal” Conversion To For-Profit Model Authored by Brayden Lindrea via CoinTelegraph.com, Elon Musk filed another motion to block ChatGPT-creator…<\/p>\n","protected":false},"author":0,"featured_media":1505531,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1505530","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1505530","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1505530"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1505530\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1505531"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1505530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1505530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1505530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}