OpenAI has urged a federal judge in California to dismiss Elon Musk’s request for a preliminary injunction to block the AI company’s transition to a for-profit structure.
The filing, submitted on Friday, denied Musk’s claims of conspiracy and argued that his allegations were unsupported.
Musk, a co-founder of OpenAI, initiated a lawsuit in August against the company, its CEO Sam Altman, and others, alleging that OpenAI’s shift toward profit-driven strategies violated contract provisions. In November, Musk expanded his lawsuit to include Microsoft and other parties, accusing OpenAI of anti-competitive practices aimed at monopolizing the generative AI market.
OpenAI’s legal filing stated that it is competing in the AI marketplace and not engaging in any unlawful activities to restrict competition.
OpenAI published emails and text messages involving Musk on its website to counter his claims. The communications, according to the company, demonstrate Musk’s early support for OpenAI’s transition to a for-profit model before he stepped away after failing to secure majority equity and full control of the company.
Musk has since established a rival AI firm, xAI, which announced earlier this month that it had raised $6 billion in equity financing.
In a separate filing, Microsoft, a key partner of OpenAI, rejected Musk’s allegations of collusion. Microsoft stated that its partnership with OpenAI fosters competition and innovation within the AI sector, asserting that the companies operate as independent entities pursuing distinct strategies.
OpenAI was founded in 2014 as a nonprofit and has since transitioned into a significant player in generative AI through partnerships and funding. Microsoft has invested billions in the company, and OpenAI recently secured $6.6 billion in a funding round, bringing its estimated valuation to $157 billion.
OpenAI is currently pursuing a plan to restructure its core business into a for-profit benefit corporation, with the original nonprofit retaining a minority stake.
Musk has opposed this shift, filing a motion for a preliminary injunction to halt the transition. U.S. District Judge Yvonne Gonzalez Rogers is set to hear arguments on the matter on January 14.
