Elon Musk has petitioned a federal court to prevent OpenAI, the company behind ChatGPT, from transforming into a fully for-profit entity. Musk argues that OpenAI, originally established as a nonprofit research organization, is straying from its founding mission. According to his legal team, OpenAI is behaving like a "Frankenstein, legally stitched together to serve Microsoft’s corporate interests."

Representing Musk, his AI development startup xAI, and former OpenAI board member Shivon Zilis, attorneys have requested a temporary restraining order against OpenAI. This order would also prohibit the company from requiring its investors to abstain from funding competing firms, including xAI.

The legal filing marks an escalation in the ongoing dispute between Musk, OpenAI CEO Sam Altman, and other key players, including tech investor Reid Hoffman and Microsoft. Musk, one of OpenAI’s co-founders and initial investors, left the organization after proposing to take control of its direction—a proposal rejected by other leadership members. Musk has since expressed concerns over OpenAI’s competitiveness in AI development.

Initially, Musk filed a lawsuit against OpenAI in March 2024 in a California state court but later withdrew the complaint. He refiled it several months later in federal court, alleging that OpenAI violated federal racketeering laws (RICO).

In mid-November, Musk’s legal team expanded the complaint to include accusations that OpenAI and Microsoft breached antitrust laws. The lawsuit claims that OpenAI urged investors to agree not to fund rival companies, including Musk’s xAI, thereby undermining competition in the AI sector.