OpenAI Fights to Keep Countersuit Against Elon Musk in Trial Over For-Profit Shift

OpenAI argues to keep countersuit against Musk in trial over for-profit shift

May 29 (Reuters) - OpenAI said it should be allowed to keep its countersuit against billionaire Elon Musk, saying the Tesla CEO's motion to dismiss the ChatGPT maker's claims has "no grounding in facts". In a court filing late on Wednesday, OpenAI said its countersuit - which accuses Musk of engaging in fraudulent business practices under California law - should be included in the expedited trial, rather than put on hold. OpenAI has argued that a $97.4 billion takeover bid for the company earlier this year from a Musk-led consortium was a "sham bid" aimed at drumming up media frenzy. OpenAI alleged the bid was leaked to the media before the proposal reached OpenAI's board. Last year, Musk, who co-founded OpenAI in 2015 but left before the firm became an AI juggernaut, sued OpenAI and its CEO Sam Altman over the company's transition to a for-profit model. He accused OpenAI of straying from its founding mission - to develop AI for the good of humanity, not corporate profit. OpenAI in April countersued Musk, citing a pattern of harassment by Musk and asking a federal judge to stop Musk from any "further unlawful and unfair action" against OpenAI. Musk had asked a federal judge to dismiss or delay OpenAI's counterclaims until a later stage in the case. While OpenAI earlier this month dialed back its plan to remove control by its non-profit arm, Musk's lawyer said the billionaire CEO would still proceed with his lawsuit. Reporting by Deborah Sophia in Bengaluru; Editing by Shounak Dasgupta Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial IntelligenceADAS, AV & SafetySoftware-Defined VehicleSustainable & EV Supply Chain

OpenAI argues to keep countersuit against Musk in trial over for-profit shift

OpenAI has argued that a $97.4 billion takeover bid for the company earlier this year from a Musk-led consortium was a "sham bid" aimed at drumming up media frenzy. OpenAI alleged the bid was leaked to the media before the proposal reached OpenAI's board. Last year, Musk accused OpenAI of straying from its founding mission - to develop AI for the good of humanity, not corporate profit.OpenAI said it should be allowed to keep its countersuit against billionaire Elon Musk, saying the Tesla CEO's motion to dismiss the ChatGPT maker's claims has "no grounding in facts". In a court filing late on Wednesday, OpenAI said its countersuit - which accuses Musk of engaging in fraudulent business practices under California law - should be included in the expedited trial, rather than put on hold. OpenAI has argued that a $97.4 billion takeover bid for the company earlier this year from a Musk-led consortium was a "sham bid" aimed at drumming up media frenzy. OpenAI alleged the bid was leaked to the media before the proposal reached OpenAI's board. Last year, Musk, who cofounded OpenAI in 2015 but left before the firm became an AI juggernaut, sued OpenAI and its CEO Sam Altman over the company's transition to a for-profit model. He accused OpenAI of straying from its founding mission - to develop AI for the good of humanity, not corporate profit. OpenAI in April countersued Musk, citing a pattern of harassment by Musk and asking a federal judge to stop Musk from any "further unlawful and unfair action" against OpenAI. Musk had asked a federal judge to dismiss or delay OpenAI's counterclaims until a later stage in the case. While OpenAI earlier this month dialed back its plan to remove control by its non-profit arm, Musk's lawyer said the billionaire CEO would still proceed with his lawsuit.

OpenAI Wants Its Fraud And Media Manipulation Countersuit Against Elon Musk Kept Alive, Labels His $97.4 Billion Bid A Stunt - Tesla (NASDAQ:TSLA)

On Wednesday, the legal battle between OpenAI and Tesla Inc. TSLA CEO Elon Musk escalated as the ChatGPT maker urged a judge to allow its countersuit to proceed, accusing the billionaire of fraud and media manipulation. What Happened: In a court filing, OpenAI argued that Musk's motion to dismiss its countersuit has "no grounding in facts" and should be denied, reported Reuters. The AI firm said its claims of fraudulent business practices under California law should remain part of the upcoming expedited trial. OpenAI's countersuit, filed in April, alleges that Musk launched a "sham" $97.4 billion takeover bid through a consortium earlier this year, leaking it to the press before presenting it to OpenAI's board in an attempt to generate public attention. See Also: Tesla's Optimus May Be The First Humanoid Robot To Achieve High Volume And Tech Scale, Says Nvidia CEO Jensen Huang: '... Likely To Be The Next Multi-Trillion Dollar Industry' OpenAI also accuses Musk of engaging in a pattern of harassment against the company, asking the court to block any further "unlawful and unfair action," reported added. Why It's Important: Musk, who co-founded OpenAI in 2015 but left in 2018, sued the company last year, claiming it abandoned its nonprofit mission by becoming a for-profit entity. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Earlier this month, OpenAI softened its corporate control structure, with CEO Sam Altman saying, "OpenAI was founded as a non-profit, is today a non-profit that oversees and controls the for-profit, and going forward will remain a non-profit that oversees and controls the for-profit." Meanwhile, OpenAI's plan to become a $300 billion public-benefit corporation has been facing hurdles, including demands from state regulators for independent valuations and disputes among major investors over equity. Delaware's attorney general is reportedly bringing in an investment bank to assess the nonprofit's stake in the new for-profit entity. Check out more of Benzinga's Consumer Tech coverage by following this link. Photo courtesy: Svet foto / Shutterstock.com Read Also: AMD Deepens AI Ecosystem With Enosemi Acquisition Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. TSLATesla Inc$355.00-0.53%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum94.34Growth91.88Quality88.81Value8.35Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs