OpenAI countersues Elon Musk in legal conflict over ChatGPT maker’s company aspirations

OpenAI is suing Elon Musk for unfair competition and interfering with its business relationships with investors and customers, escalating a legal battle between the ChatGPT maker and the billionaire who helped bankroll the artificial intelligence startup a decade ago. The allegations against Musk were filed Wednesday in a federal court in California as a counterclaim […]

Home » OpenAI countersues Elon Musk in legal conflict over ChatGPT maker’s company aspirations

OpenAI is taking legal action against Elon Musk for unreasonable competitors and disrupting its service relationships with financiers and consumers, intensifying a legal fight in between the ChatGPT maker and the billionaire who assisted bankroll the expert system start-up a years earlier.

The claims versus Musk were submitted Wednesday in a federal court in California as a counterclaim to the Tesla CEO’s suit versus OpenAI, which is heading to a jury trial next year.

Musk, an early OpenAI financier who now runs his own AI company, xAI, in addition to Tesla, SpaceX, social networks platform X and President Donald Trump’s Department of Government Efficiency, started a legal offensive versus OpenAI and its CEO Sam Altman more than a year earlier.

He initially demanded breach of agreement over what he stated was the betrayal of its starting intends as a not-for-profit lab, and later on broadened his claims.

A federal judge in March rejected Musk’s ask for a court order obstructing OpenAI from transforming itself to a for-profit business however stated she might accelerate a trial to think about Musk’s claims. She provided to hold a trial later on this year, however it has actually been pressed back to March 2026.

In this week’s counterclaim, OpenAI implicates Musk of making a “sham quote” in February to purchase a managing stake in the not-for-profit.

Musk and a group of financiers provided $97.4 billion for OpenAI’s properties, a number that OpenAI stated Musk pulled from the character 974 Praf in the sci-fi unique “Look to Windward” by Scottish author Iain Banks. Musk has actually likewise called a few of his SpaceX equipment after ships in the book.

OpenAI stated it “acknowledged the quote as a feint” however has actually consistently needed to divert resources and “suffered damage as an outcome of Musk’s illegal project of harassment, disturbance, and false information.”

Musk lawyer Marc Toberoff reacted in an e-mail late Wednesday and stated that if OpenAI’s board of directors had actually “really thought about the quote, as they were obliged to do, they would have seen how major it was.”

“It’s informing that needing to pay reasonable market price for OpenAI’s possessions supposedly ‘interferes’ with their service strategies,” Toberoff composed.

——– The Associated Press and OpenAI have a licensing and innovation arrangement that enables OpenAI access to part of AP’s text archives.

Matt O’brien, The Associated Press

Piter Walley
Piter Walley

Piter’s career in journalism took off when he joined a local newspaper as a cub reporter. His insatiable curiosity and commitment to uncovering the truth set him apart from his peers. He quickly climbed the ranks and became known for his in-depth investigative pieces that shed light on critical societal issues.

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