OpenAI urged a federal judge in California on Friday (Dec 13) to dismiss Elon Musk's request to block its transition to a for-profit entity.

The company also released a collection of emails and text messages involving Musk, asserting that he initially supported the for-profit model before withdrawing from OpenAI after failing to secure majority ownership and control.

Musk, a cofounder of OpenAI, has since launched a competing AI firm, xAI. In August, he filed a lawsuit against OpenAI, its CEO Sam Altman, and others, accusing them of prioritizing profits over public interest in advancing AI. In November, Musk sought a preliminary injunction from US District Judge Yvonne Gonzalez Rogers in Oakland to stop OpenAI's for-profit restructuring.

OpenAI responded on its blog, stating that Musk "should focus on competing in the marketplace rather than in court." Musk later added Microsoft and other entities to his lawsuit, alleging that OpenAI was attempting to stifle competition and dominate the generative AI market.

OpenAI refuted these claims in its court filing, calling Musk's allegations "unsupported." Separately, Microsoft stated on Friday that it operates independently from OpenAI, emphasizing their competitive relationship and shared contributions to innovation.

OpenAI, which began as a nonprofit in 2014, has risen to prominence in generative AI, backed by significant investments from Microsoft. In October, OpenAI secured $6.6 billion in funding, valuing the company at $157 billion. Musk's xAI recently announced $6 billion in equity financing. OpenAI plans to restructure its core operations into a for-profit benefit corporation, with its nonprofit arm retaining a minority stake. Judge Rogers is set to hear arguments on Musk's injunction request on Jan 14.

Disclaimer: This image is taken from Reuters file