Michaela
Artificial intelligence research group OpenAI has countersued X owner Elon Musk, escalating a long-standing legal dispute that was prompted when Musk pursued litigation against the organization last week.
According to the lawsuit filed on April 9 in the Northern District of California, Musk claimed that OpenAI attempted to become a public benefit corporation under its current for-profit structure. The filing also alleged that Musk withdrew from the company after the organization refused to merge with his electric vehicle and clean energy company, Tesla.
Per the lawsuit, Musk did not honor his $1 billion pledge to OpenAI. Instead, just a year after the debut of ChatGPT, he launched his own AI company, xAI.
“Musk could not tolerate seeing such success for an enterprise he had abandoned and declared doomed. He made it his project to take down OpenAI, and to build a direct competitor that would seize the technological lead—not for humanity but for Elon Musk,” the filing stated.
“The ensuing campaign has been relentless. Through press attacks, malicious campaigns broadcast to Musk’s more than 200 million followers on the social media platform 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 filing added.
In a post on X, OpenAI announced its countersuit against Musk, describing his actions as “bad-faith tactics” aimed at undermining the organization and attempting to take control of its AI breakthroughs for personal gain.
Additionally, OpenAI has requested that the court prohibit Musk from making further attacks against the organization and urged that he be “held responsible for the damage he has already caused.” A jury trial between the two sides is scheduled to begin in the spring of next year.
According to Reuters, Musk’s attorneys pointed to an earlier $97.4 billion unsolicited acquisition offer made by a consortium led by Musk — an offer the AI research group ultimately declined. “Had OpenAI’s Board genuinely considered the bid as they were obligated to do, they would have seen how serious it was. It’s telling that having to pay fair market value for OpenAI’s assets allegedly ‘interferes’ with their business plans,” Musk’s lawyer Marc Toberoff said in a statement provided to Reuters.
Read More
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
