• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

OpenAI fires back at Elon Musk bid to block for-profit conversion

by December 13, 2024
written by December 13, 2024

By Mike Scarcella

(Reuters) – OpenAI said it would ask a judge in California on Friday to reject a request by billionaire Elon Musk to halt the ChatGPT maker’s conversion to a for-profit company.

OpenAI also published a trove of emails and text messages with Musk on its website to argue that he initially backed for-profit status for OpenAI before walking away from the company after failing to get a majority equity stake and full control.

Musk, who was an OpenAI cofounder, has since launched a competing artificial intelligence company, xAI.

Musk sued OpenAI, its CEO Sam Altman and others in August, claiming they violated contract provisions by putting profits ahead of the public good in the push to advance AI. In November he asked U.S. District Judge Yvonne Gonzalez Rogers (NYSE:ROG) in Oakland for a preliminary injunction blocking OpenAI from converting to a for-profit structure.

A lawyer for Musk did not immediately respond to a request for comment on Friday.

OpenAI’s blog post said Musk “should be competing in the marketplace rather than the courtroom.”

Musk has since added Microsoft (NASDAQ:MSFT) and others as defendants to his lawsuit, alleging OpenAI was scheming to sideline rivals and monopolize the market for generative artificial intelligence.

OpenAI started as a nonprofit in 2014 and has become the face of generative AI through billions of dollars in funding from Microsoft. In October it closed a $6.6 billion funding round from investors, which could value the company at $157 billion.

Musk’s xAI earlier this month said it had raised about $6 billion in equity financing.

OpenAI is working on a plan to restructure its core business into a for-profit benefit corporation. The OpenAI nonprofit would own a minority stake in the for-profit company.

Rogers is scheduled to hear arguments on Musk’s injunction bid on Jan. 14.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
U.S. stocks mixed at close of trade; Dow Jones Industrial Average down 0.20%
next post
Super Micro enlists Evercore to explore capital raising options, Bloomberg reports

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Analysts weigh in on Trump’s tariff threats
    • Bank of England cuts base rate by 25 bps to 4.75%

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy