The injunction would also stop OpenAI from allegedly requiring its investors to refrain from funding competitors, including xAI and others.

Summary

Elon Musk has filed a court injunction to block OpenAI’s transition to a fully for-profit business and prevent it from allegedly restricting investors from supporting competitors like his AI startup, xAI.

Musk accuses OpenAI and Microsoft of antitrust violations, claiming they used “group boycotts” to limit funding for rivals while benefitting from shared sensitive information.

OpenAI dismissed the allegations as baseless. The legal battle reflects escalating competition in the booming generative AI industry, valued at $157 billion, with Musk’s xAI emerging as a new challenger.