Elon Musk Seeks Court Injunction to Block OpenAI’s Conversion to For-Profit Entity

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Elon Musk Seeks Court Injunction to Block OpenAI’s Conversion to For-Profit Entity
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Elon Musk has filed for a preliminary injunction in federal court to prevent OpenAI from transitioning into a fully for-profit business.that in a recent development in the ongoing legal battle between Elon Musk and OpenAI, attorneys representing Musk, his AI startup xAI, and former OpenAI board member Shivon Zilis have filed for a preliminary injunction against the AI powerhouse.

OpenAI has emerged as one of the most prominent startups in recent years, with its AI chatbot ChatGPT becoming a major success and driving significant corporate enthusiasm for AI and related large language models. Meanwhile, Musk’s xAI, which debuted in July 2023, has released its Grok chatbot and is raising up to $6 billion at a $50 billion valuation to purchase 100,000 Nvidia chips.

In July, Microsoft gave up its observer seat on OpenAI’s board, although the FTC continues to monitor the influence of the two companies over the AI industry. FTC Chair Linda Khan announced earlier this year that the agency would initiate a market inquiry into the investments and partnerships being formed between AI developers and major cloud service providers, including OpenAI, Amazon, Alphabet, Microsoft, and Anthropic.

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