On February 29th, Elon Musk, tech mogul, sued OpenAI and its CEO, Sam Altman. The reason? Musk claims in the AI lawsuit that Altman had abandoned the company’s original mission.
Here are the facts…
In This AI Lawsuit, It’s Not Business… It’s Personal.
In the complaint, Musk Argues that OpenAI has forgotten its original mission and that rather than being a non-profit…
Altman and the company are furthering the interests of their largest investor, Microsoft…
By keeping their research and data private.
The lawsuit reads:
“OPENAI, INC. HAS BEEN TRANSFORMED INTO A CLOSED-SOURCE DE FACTO SUBSIDIARY OF THE LARGEST TECHNOLOGY COMPANY IN THE WORLD: MICROSOFT,”
As listed in the AI lawsuit, Musk accuses OpenAI of breaching contract…
By putting profits over public good when developing artificial intelligence.
The suit cites that OpenAI’s certificate of incorporation states that the organization “will benefit the public”.
OpenAI, as a nonprofit, was always meant to provide the public with open-sourced information from its AI data. However, due to the nature of Microsoft and OpenAI’s partnership…
That information is kept behind lock and key.
Musk’s Involvement
Besides the exclusive partnership, Musk has had issues with Sam Altman for years. As one of the co-founders of OpenAI, Musk and Altman had worked closely together on the growth of the non-profit.
During his tenure, Musk invested $44 million over the course of four years.
But since his departure in 2018, Musk and Altman have grown estranged, with Musk being increasingly critical of the work at OpenAI.
If all goes according to Musk’s plan, the AI lawsuit will mean the information that OpenAI is keeping close to their chest…
WILL BE REVEALED.
Besides just the data, Musk hopes that the court will order OpenAI to release all of their research…
And prevent the non-profit and Microsoft from profiting off of the tech being researched.
It also is worth mentioning that Musk is seeking damages from the suit. It’s unclear how much he’s asking for but Musk’s lawyers have stated that any damages will be donated to charities.
So… does this case have any legs to stand on?
Does Musk Have A Case?
While the tech billionaire might think he’s got this AI lawsuit in the bag…
Many doubt whether the case will actually go anywhere.
Musk’s main concern is OpenAI taking a for-profit route rather than remaining a non-profit. He consistently criticizes the nature of the relationship between OpenAI and Microsoft…
But when he was a part of the team in 2017, Musk himself tried to take over OpenAI. Not only did he aim to make it a profitable, commercial venture…
But his original plan involved:
- Merging OpenAI with Musk’s company, Tesla
- Musk taking majority equity in the company
- Musk becoming CEO of the company
In response to the suit, OpenAI published a blog post that both confirmed Musk’s intentions during this period…
AND PROVIDED EVIDENCE IN THE FORM OF EMAILS.
The emails were published with the goal of getting the AI lawsuit dismissed.
During this period, the organization was already considering a commercial venture. Musk wanted to command the ship. One of the emails in question read:
“WE NEED TO GO WITH A MUCH BIGGER NUMBER THAN $100M TO AVOID SOUNDING HOPELESS… I WILL COVER WHATEVER ANYONE ELSE DOESN’T PROVIDE.”
With still no answer regarding the next steps for the lawsuit…
All we can do is wait and see which way the artificially intelligent wind blows.
Awaiting AI Lawsuit Outcome
At the moment both Musk and Altman are at an impasse. Evidently, Musk wants the AI lawsuit to move forward to a jury trial. Altman wants it dismissed.
Besides the reasons listed in the suit…
It is worth taking note that Musk created his own AI startup, xAI, in March 2023. It begs the question of whether Musk really wants OpenAI’s research for the public…
Or potentially for some other dubious reason.
Regardless, as a response to the emails OpenAI published, Musk took to X, his social media platform…
And replied that if Altman changes the organization’s name to “ClosedAi”, he’ll drop the suit.
…Classic Elon Charm.
Musk has had an incredibly busy few months, navigating several new projects and controversies…
Despite that, even he can’t predict if this AI lawsuit will fall in his favor.
Nevertheless, there are some cases that even one of the richest men on earth can’t buy their way out of.
Be Great,
GCTV Staff
Disclaimer: This content is intended to be used for educational and informational purposes only. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment or business decision. Investment, real estate, and business involve great risk and there is no guarantee of performance or results.
We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.
