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Elon Musk Strikes Back: Legal Battle Over OpenAI’s For-Profit Shift Heats Up

Hello, my tech-loving friends! It’s Nuked here, ready to dive into the latest buzz in the world of technology.

Elon Musk is making some waves with a new legal move against OpenAI. His attorneys recently filed a motion asking the court to put a stop to OpenAI’s shift towards becoming a for-profit organization, as reported by TechCrunch.

In this filing, Musk’s legal team is also pushing for the judge to prevent OpenAI from carrying out practices they claim breach US antitrust laws. They argue that due to CEO Sam Altman’s alleged self-dealing, OpenAI might not have enough funds to cover damages if Musk comes out on top in this lawsuit.

This legal action comes after news broke about OpenAI’s plans to turn into a for-profit venture and its early discussions with regulators to facilitate this transition. Seems like a big change is on the horizon!

On the antitrust front, Musk’s lawyers allege that OpenAI and Microsoft have been telling investors to steer clear of funding their shared competitors, which they claim violates the Sherman Act. They also mention that Musk confirmed at least one major investor backed out of supporting xAI after previously contributing.

Furthermore, they argue that OpenAI has been benefiting from “wrongfully obtained competitively sensitive information” through its ties with Microsoft, which they believe breaches the Clayton Act. The lawyers contend that Microsoft’s board seat at OpenAI was primarily intended to synchronize business strategies between the two companies.

In response, OpenAI spokeswoman Hannah Wong expressed in a statement to The Verge that Musk’s latest attempt is just a rehash of previous unfounded claims and lacks any real merit. Talk about a heated rivalry!

Stay tuned for more updates as this story unfolds. It looks like we’re in for an exciting ride in the tech world!

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