Elon Musk is asking a federal court to prevent OpenAI from fully transitioning into a for-profit company.

Musk, his AI startup xAI, and former OpenAI board member Shivon Zilis filed for a preliminary injunction against OpenAI, alleging the company required investors to avoid funding competitors, including xAI.

The legal dispute, which escalated after Musk’s original March lawsuit, includes claims of antitrust violations and racketeering against OpenAI and Microsoft.

Musk’s lawyers argue that OpenAI’s restructuring and investor agreements harm competition by blocking rivals’ access to capital, CNBC has reported.

OpenAI, now valued at $157 billion, has faced growing competition in the AI sector.

Written by B.C. Begley