“Elon’s nonstop actions against us are just bad-faith tactics to slow down OpenAI and seize control of the leading AI innovations for his personal benefit,” OpenAI said in a statement released Wednesday. “Today, we countersued to stop him.”
OpenAI has filed a lawsuit against Elon Musk, claiming that the billionaire owner of X and Tesla has “tried every tool available to harm” the company.
According to CNBC, the lawsuit was filed earlier this week in federal district court. The same California-based court had, in March, dismissed Elon Musk’s attempt to prevent OpenAI from transforming into a for-profit entity.
“Elon’s nonstop actions against us are just bad-faith tactics to slow down OpenAI and seize control of the leading AI innovations for his personal benefit,” OpenAI said in a statement released Wednesday. “Today, we countersued to stop him.”
OpenAI is seeking punitive damages, as well as an injunction prohibiting Musk from attempting to further interfere in its operations.
“Through press attacks, malicious campaigns broadcast to Musk’s more than 200 million followers on social media platforms he controls, a pretextual demand for corporate records, harassing legal claims, and a sham bid for OpenAI’s assets, Musk has tried every tool available to harm OpenAI,” the company said in a Wednesday court filing.
Musk, in collaboration with OpenAI CEO Sam Altman, helped form the artificial intelligence company in 2015. However, he and Altman later split; Musk has since repeatedly criticized OpenAI’s close relationship with Microsoft.
Attorneys for Musk say that OpenAI has misrepresented their billionaire’s clients intent.
“Had OpenAI’s Board genuinely considered the bird they were obligated to do they would have seen how serious it was,” attorney Mark Toberoff told CNBC in a statement. “It’s telling that having to pay fair market value for OpenAI’s assets allegedly ‘interferes’ with their business plans.”
CNBC notes that Musk founded xAI in 2022, several months after OpenAI publicly launched its best-known product, ChatGPT.
In its lawsuit, OpenAI reported that it estimates its revenue for the upcoming year to approach or exceed $13 billion. Now, the company’s attorneys say that Musk is angered by the opportunity lost.
“Musk could not tolerate seeing such success for an enterprise he had abandoned and declared doomed,” the lawsuit alleges.
“Musk’s continued attacks on OpenAI, culminating most recently in the fake takeover bid designed to disrupt OpenAI’s future, must cease,” OpenAI said. “Musk should be enjoined from further unlawful and unfair action, and held responsible for the damage he has already caused.”
In February, Musk made an unsolicited bid on OpenAI, offering to buy it for about $97 billion.
Musk’s offer was quickly rejected by Altman, who wrote, “No thank you but we will buy twitter for $9.74 billion if you want.”
Sources
Judge denies Musk’s attempt to block OpenAI from becoming for-profit entity
OpenAI says Musk has run ‘unlawful campaign of harassment’ against company in lawsuit
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