Elon Musk Sues OpenAI and CEO Sam Altman Over Microsoft Deal

Elon Musk Sues OpenAI and CEO Sam Altman Over Microsoft Deal

As a long-time tech enthusiast and investor with a keen eye for spotting potential game-changers, I can’t help but feel a sense of disillusionment regarding the latest developments between Elon Musk and OpenAI. Having witnessed firsthand the rise of groundbreaking companies like Tesla and SpaceX, I was excited to see what open, ethical AI research could bring to the table.


Elon Musk has filed a new lawsuit against OpenAI and its CEO, Sam Altman, due to their recent collaboration with Microsoft. Musk claims that Altman deceived him during the establishment of the company in 2015. This legal action comes after Musk dropped an earlier lawsuit in June, which accused OpenAI of prioritizing profits over the original agreement for AI research intended to benefit all of humanity.

The new suit alleges that OpenAI, through its recent partnership with Microsoft, which leverages GPT-4 AI technology, has deviated from its initial mission as a non-profit organization, which Elon Musk had invested in for the purpose of prioritizing human safety and openness over shareholder value. This shift is said to have been a result of OpenAI’s operations not aligning with their original promises.

Following Musk’s departure from OpenAI’s board in 2018, it is claimed that Altman steered the organization towards profit-oriented ventures. This included establishing OpenAI, L.P., with the lawsuit suggesting that the company constructed a corporate structure primarily to exploit the non-profit’s assets for financial gain.

In simpler terms, the lawsuit claims that while the nonprofit’s 2022 tax report indicated only $44,485 in income, OpenAI is said to have earned hundreds of millions of dollars within a year.

As artificial intelligence rapidly advances and generates hyper-realistic content, creators may face potential financial losses. One of Elon Musk’s legal representatives, Marc Toberoff, contends that if entities such as OpenAI and Microsoft dominate AI, numerous creators will continue to be exploited or sidelined. He emphasizes, “This lawsuit isn’t just about money; the fate of advanced general intelligence hangs in the balance.”

Following his recent disagreement with OpenAI, Musk launched xAI last year, leading to an impressive valuation of $24 billion USD.

Read More

2024-08-05 19:56