Elon Musk has initiated a legal action aiming to prevent OpenAI, its CEO Sam Altman, co-founder Greg Brockman, and other involved entities from converting the organization behind ChatGPT into a for-profit company.
As reported by [*TechCrunch*](https://techcrunch.com/2024/11/30/elon-musk-files-for-injunction-to-halt-openais-transition-to-a-for-profit/), Musk lodged the motion on Friday night in the U.S. District Court for the Northern District of California. The filing alleges that Altman, Brockman, OpenAI board members, and major stakeholder Microsoft are infringing upon the terms of Musk’s original contributions to OpenAI, which was initially founded as a nonprofit. Musk claims that the accused parties are partaking in anticompetitive behavior as OpenAI shifts to a profit-oriented model.
“Plaintiffs and the public need a halt,” states Musk’s filing. “OpenAI’s shift from nonprofit to a profit-driven giant is fraught with anticompetitive conduct, clear violations of its charitable mission, and widespread self-enrichment.”
Musk, an [early investor and board member](https://mashable.com/article/elon-musk-openai-funding) of OpenAI, cut ties with the organization in 2018. Since that time, he has persistently asserted that Altman and Brockman have breached their agreement to uphold OpenAI’s nonprofit status and to concentrate on developing open-source AI technologies. Over the past year, Musk has lodged several lawsuits against OpenAI, alleging violations of this agreement. While he had previously [dismissed one lawsuit](https://mashable.com/article/elon-musk-openai-sam-altman-lawsuit-dropped), he subsequently filed a [new, more vigorous suit](https://mashable.com/article/elon-musk-lawsuit-openai-again) with similar accusations.
In this recent legal endeavor, Musk seeks an injunction to “maintain what remains of OpenAI’s nonprofit identity, free from self-serving actions.” The motion alerts that without action, “the OpenAI that was promised to Musk and the public will have vanished by the time the Court considers the substantive issues.”
The injunction charges OpenAI with engaging in activities that justify halting its transition to a for-profit model. Among the accusations are claims that OpenAI has obtained agreements from its investors to refrain from funding competitors like Musk’s xAI, established “exclusive deals” with Microsoft to monopolize the generative AI sector, and participated in “widespread self-dealing” under Altman’s direction. The filing highlights contracts between OpenAI and entities including Stripe, Rain AI, Helion Energy, and Reddit, where Altman purportedly holds financial interests.
In reaction to the motion, an OpenAI representative dismissed Musk’s allegations, asserting, “Elon’s fourth attempt, which once more rehashes the same unfounded accusations, remains [completely without merit](https://openai.com/index/openai-elon-musk/).”