Two major tech investors — Valor Equity Partners and Atreides Management — will support Elon Musk's claims against OpenAI, The Washington Post reports.
Musk opposes OpenAI's restructuring and commercialization, arguing that the nonprofit should adhere to its original mandate approved by donors.
Musk filed a lawsuit in federal court in Northern California, seeking to prevent OpenAI from altering its structure. He contends that such changes deviate from the organization’s foundational principles.
A co-founder and major donor to OpenAI in 2015, Musk parted ways with the organization in 2018 after attempting to gain greater control over the company.
The billionaire is also asking the court to prohibit OpenAI from requiring its investors to refrain from supporting competing AI companies, including Musk’s own startup, xAI.
Last week, Encode, a progressive technology advocacy group, filed to participate in the lawsuit, expressing support for Musk’s claims. This move has been backed by several AI researchers, including Geoffrey Hinton, a former Google scientist and Nobel laureate in AI.
"OpenAI was established as a nonprofit organization explicitly focused on safety, with a charter containing numerous safety-related commitments," Geoffrey Hinton stated in a declaration published by Encode. "Allowing it to break all these commitments whenever they become inconvenient sends a very poor signal to other participants in the ecosystem."
Antonio Gracias, CEO of investment firm Valor Equity Partners, which has invested in Elon Musk’s xAI, stated that there is a general consensus among investors that OpenAI persuaded its backers to refrain from funding competitors during its latest financing round.
However, OpenAI spokesperson Jason Daitrom referred to a court filing from December 13, 2024, in which the company assured it does not prohibit its investors from supporting competitors. Still, such investors are excluded from receiving information from OpenAI that could affect competition.
The stakes in this dispute have escalated significantly since Musk became one of the key advisors to President-elect Donald Trump. This new role could enable Musk to influence AI regulations, potentially impacting OpenAI and the broader AI industry.