Friday, May 9, 2025

Musk Threatens to Sue OpenAI Despite Refusal to Go Commercial

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Introduction to the Dispute

Elon Musk’s lawyer has stated that OpenAI’s decision not to fully restructure into a commercial business "changes nothing" in the ongoing lawsuit between Musk and the manufacturer of ChatGPT. This statement suggests that Musk will continue to pursue legal action against OpenAI, according to a report by Bloomberg.

Background of the Lawsuit

Musk had initially sought to block OpenAI from transitioning into a commercial entity, but his appeal was denied. However, he was allowed to proceed with his lawsuit against the startup’s alleged anticompetitive practices. Additionally, Musk made an unsuccessful bid to acquire the assets of the nonprofit organization that controls OpenAI for $97.4 billion.

Response from OpenAI

Representatives of OpenAI have responded to Musk’s lawyer’s statement, claiming that the billionaire’s lawsuit is merely an attempt to hinder the company’s development. OpenAI has previously suggested that Musk is using the legal system to slow down his competitors. An OpenAI spokesperson stated, "Elon continuing with his baseless lawsuit only proves that it was always a bad-faith attempt to slow us down."

Allegations of Misconduct

Musk’s lead lawyer, Marc Toberoff, alleges that OpenAI’s restructuring plans were designed to avoid legal scrutiny. Toberoff claims that the company’s actions contradict its original mission, which was to create artificial intelligence for the benefit of all people. He also stated that OpenAI’s refusal to fully restructure into a commercial business does not address the core issues, including the transfer of charitable assets for the benefit of private individuals, such as Altman, his investors, and Microsoft.

Conclusion

The dispute between Elon Musk and OpenAI continues, with both parties exchanging accusations and counter-accusations. Musk’s lawyer has made it clear that the billionaire will not back down from his lawsuit, despite OpenAI’s decision not to fully restructure into a commercial business. The outcome of this lawsuit remains to be seen, but one thing is certain: the development of artificial intelligence will continue to be a highly contested and competitive field. As the situation unfolds, it will be interesting to see how the legal system navigates the complex issues surrounding AI development and commercialization.

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