Musk For Profit Change Suit: OpenAI, Microsoft Seek Dismissal of Lawsuit

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Musk For Profit Change Suit

OpenAI and Microsoft have filed motions in a California federal court urging the dismissal of Elon Musk’s antitrust and breach of contract lawsuit, which alleges that OpenAI abandoned its nonprofit mission in favor of a profit-driven structure. The motions, filed separately on Friday, argue that Musk’s claims are conclusory, lack legal merit, and are fueled by competitive motives rather than legitimate grievances.

Musk’s Lawsuit Claims OpenAI Betrayed Its Mission

Musk initially sued OpenAI and its CEO, Sam Altman, in February 2024, claiming the company misled early investors, including himself, by falsely promising to remain a nonprofit dedicated to open AI research. According to Musk, OpenAI’s transition to a “capped profit” model—and its multibillion-dollar partnership with Microsoft—represented a breach of its founding principles.

In August 2024, Musk re-filed his lawsuit in federal court, expanding his claims to include fraud, conspiracy, false advertising, and breach of an implied contract. He later added Microsoft—OpenAI’s largest financial backer—along with Microsoft executive Deannah Templeton, venture capitalist Reid Hoffman, and California Attorney General Rob Bonta as defendants.

OpenAI: Musk’s Claims Are “Stale and Invented”

In its motion to dismiss, OpenAI asserted that Musk’s claims are baseless, arguing that he willingly supported the company’s shift toward a for-profit model in 2018 after his failed attempt to take control of the organization.