Elon Musk is seeking a federal court injunction to prevent OpenAI from transitioning to a fully for-profit model, alleging violations of federal racketeering and antitrust laws. Musk's legal team claims OpenAI is engaging in a "group boycott" that restricts investment opportunities for his AI startup, xAI, while benefiting from sensitive information shared with Microsoft. OpenAI, which has evolved from a non-profit to a capped-profit model, is now facing increased competition in the rapidly growing generative AI market.
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