Musk accuses OpenAI of teaming up with Microsoft to suppress the development of xAI: cheating away more than 40 million mg, Altman and Stripe enriching themselves

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ABMedia
12-02
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Musk recently accused several OpenAI founders and partners, including Microsoft, of engaging in unfair competition. Musk said that these actions harmed the development of his AI company xAI, and asked the court to intervene and apply for an injunction to suspend OpenAI's related activities.

Accused OpenAI of blocking investment, Sam Altman and Stripe enrich themselves

Musk applied for an injunction to the U.S. District Court for the Northern District of California and cited a number of charges, including:

  1. Suppressing competitors : Musk accused OpenAI of using Microsoft to pressure other investors not to support OpenAI's competitors, including xAI.
  2. Improper use of sensitive information : OpenAI has been accused of profiting from competitive information provided by Microsoft.
  3. Changing the operating model : OpenAI was originally a non-profit organization, but later transformed into a "profit" enterprise. Musk believes that this violates the public welfare commitment when it was originally established.
  4. Self-enhancement trading : Allegations that OpenAI CEO Sam Altman used his position to allow OpenAI to cooperate with companies in which Altman had a financial interest, such as selecting Stripe as a payment processor, and profiting from it.

Musk's legal team warned that if these actions are not stopped quickly, it will cause "irreparable damage" to the market and public interests.

Blame OpenAI for deviating from its original intention and jointly monopolizing AI development

Musk was previously one of the co-founders of OpenAI, but in 2018 because he was dissatisfied with the future direction of OpenAI, he repeatedly criticized OpenAI for departing from its original non-profit intention. Last year, he established his own AI company xAI to launch an AI model. Grok and many other services. However, Musk believes that OpenAI's behavior hinders the development of xAI.

According to Musk's legal team, at least one large investor has given up on investing in xAI because of his participation in OpenAI's fundraising. In addition, Microsoft's cooperation with OpenAI is considered to potentially involve illegal sharing of unique data, technology and resources, violating the principles of fair competition in the market.

Musk was defrauded of more than 40 million mg, OpenAI refutes it as baseless

Regarding Musk's latest lawsuit, an OpenAI spokesperson responded that this is the "fourth time Musk has made baseless accusations" and described them as "exaggerations." OpenAI had previously asked the court to dismiss Musk's lawsuit because Musk claimed that he was defrauded of more than $44 million by OpenAI, but OpenAI said this had no legal basis.

However, Musk's lawyer warned that if the court does not take action, OpenAI will not be able to complete the corporate transformation, which may cause heavy losses to investors. According to previous reports, OpenAI is currently rapidly restructuring into a for-profit enterprise. If the transformation is not completed within two years, OpenAI's recent financing may be converted into debt, and investors will have the right to withdraw funds.

( OpenAI will turn into a for-profit organization and has started conversations with California regulators )

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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