Elon Musk files lawsuit to block OpenAI’s transition to for-profit

Dec 02, 2024

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Jack Aylmer Reporter

By Jack Aylmer (Reporter), Alex Delia (Producer), Jake Larsen (Video Editor)

Elon Musk has filed a lawsuit against OpenAI, the artificial intelligence company he co-founded, alleging violations of licensing agreements tied to foundational technology developed by his companies. The legal battle comes amid scrutiny of OpenAI CEO Sam Altman and his push for profitability.

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Musk’s lawsuit, filed this week, accuses OpenAI of abandoning its founding principles of transparency and collaboration by engaging in practices that Musk’s legal team called “commercially exploitative.”

Since leaving OpenAI in 2018, Musk has been a vocal critic of its transition from a nonprofit to a for-profit entity. He claims the shift prioritizes corporate interests over public accountability.

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With OpenAI valued at over $90 billion and Musk’s companies spanning multiple industries, the legal battle could have far-reaching implications for the tech industry.

Observers say this clash underscores a larger debate about the ethical and regulatory frameworks needed to guide AI development.

Tags: AI, Artificial Intelligence, ChatGPT, Elon Musk, Generative AI, Grok, Microsoft, OpenAI, Sam Altman

[Jack Aylmer]

ELON MUSK CONTINUES TO BE A THORN IN THE SIDE OF OPEN A-I, THE ARTIFICIAL INTELLIGENCE COMPANY HE CO-FOUNDED IN 2015… WITH A NEW LAWSUIT SEEKING TO BLOCK THE COMPANY’S TRANSITION TO A FOR-PROFIT ENTITY.

IN THE FILING, MUSK’S LEGAL TEAM CLAIMS OPEN A-I’S DECISION TO ABANDON ITS ROOTS AS A CHARITABLE NONPROFIT CONTRADICTS FOUNDING PRINCIPLES OF TRANSPARENCY AND OPEN COLLABORATION INSTATED BY THE FOUNDERS. MUSK ARGUES THE SHIFT IS ‘ILLEGAL’ AND IT WILL SOON BE TOO LATE TO STOP ALTMAN’S “BEHEMOTH” FROM CRUSHING ITS RIVALS.

THE FILING COMES AMID GROWING SCRUTINY OF OPEN A-I AND ITS CEO, SAM ALTMAN. A RECENT INVESTIGATIVE REPORT BY THE WALL STREET JOURNAL REVEALED THAT ALTMAN WORKED CLOSELY WITH OFFICIALS IN THE TRUMP ADMINISTRATION DURING ITS FINAL MONTHS IN OFFICE, PARTICULARLY IN SHAPING AI REGULATION POLICIES. ALTMAN REPORTEDLY ADVOCATED FOR LIGHTER REGULATORY FRAMEWORKS, SPARKING CRITICISM THAT OPENAI PRIORITIZED INDUSTRY INTERESTS OVER ETHICAL SAFEGUARDS.

THE FALLOUT BETWEEN MUSK AND ALTMAN IS NOT NEW. IN 2018, MUSK LEFT OPEN A-I, CITING DISAGREEMENTS OVER ITS DIRECTION AND LEADERSHIP. OPEN A-I, INITIALLY LAUNCHED AS A NONPROFIT, PIVOTED TO A FOR-PROFIT MODEL UNDER ALTMAN’S LEADERSHIP, LOSING SEVERAL FOUNDERS AND DATA SCIENTISTS OVER THE LAST YEAR AS THE COMPANY’S IDENTITY AS AN OPEN SOURCE LAB HAS SHIFTED TO A DIGITAL PRODUCT. MUSK ALSO SUED THE COMPANY THIS YEAR IN FEBRUARY, ACCUSING OPEN A-I OF SHIFTING POLICIES AFTER ENTERING A PARTNERSHIP WITH MICROSOFT.

MUSK PUBLICLY CRITICIZED THE SHIFT, POSTING ON X LAST YEAR, “OPENAI WAS CREATED AS AN OPEN SOURCE… WHICH IS WHY I NAMED IT *OPEN* A-I… NON-PROFIT COMPANY TO SERVE AS A COUNTERWEIGHT TO GOOGLE, BUT NOW IT HAS BECOME A CLOSED SOURCE, MAXIMUM-PROFIT COMPANY EFFECTIVELY CONTROLLED BY MICROSOFT… NOT WHAT I INTENDED AT ALL.”

MICROSOFT HAS INVESTED OVER $13 BILLION INTO OPEN A-I SINCE 2019, SECURING EXCLUSIVE ACCESS TO ITS A-I TECHNOLOGY, INCLUDING THE GPT-4 MODEL. MUSK HAS BEEN VOCAL ABOUT THIS PARTNERSHIP, CALLING IT A BETRAYAL OF OPENAI’S ORIGINAL MISSION.

WHAT MAKES THIS LAWSUIT PARTICULARLY INTERESTING IS THE BACKDROP OF MUSK’S INCREASING GOVERNMENTAL INFLUENCE… LEADING SOME TO SPECULATE HE COULD USE THIS NEWLY GAINED AUTHORITY TO CHALLENGE COMPETITORS, INCLUDING OPEN A-I AND THEIR BACKERS.

THIS LEGAL BATTLE MARKS YET ANOTHER CHAPTER IN THE COMPLEX RELATIONSHIP BETWEEN MUSK AND ALTMAN, TWO TECH INDUSTRY TITANS WHO HAVE CLASHED REPEATEDLY OVER THE FUTURE OF ARTIFICIAL INTELLIGENCE. WITH OPEN A-I VALUED AT AN ESTIMATED $90 BILLION… THIS FEUD COULD HAVE FAR-REACHING CONSEQUENCES FOR BOTH INDIVIDUALS… AND THE ENTIRE TECH INDUSTRY.

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FOR STRAIGHT ARROW NEWS… I’M JACK AYLMER.