Elon Musk sues OpenAI for pursuing profit, breaching initial agreement

Billionaire claims founders convinced him to found and finance startup in 2015, promising it would be a nonprofit

11:31 AM MYT

 

SAN FRANCISCO – Elon Musk has sued OpenAI and its co-founders Sam Altman and Greg Brockman, alleging the company has broken its initial agreement by pursuing profits instead of the nonprofit’s founding mission to develop artificial intelligence that benefits humanity, reported Xinhua. 

In the suit filed in a court in US San Francisco late Thursday (US time), Musk, a co-founder and early supporter of OpenAI, claimed that Altman and Brockman convinced him to help found and finance the startup in 2015 with promises it would be a nonprofit.

The founding agreement required OpenAI to make its technology “freely available” to the public, the suit said. 

The suit also alleges close alignment between Microsoft and OpenAI, saying that OpenAI has transferred to a for-profit model focused on commercialising its AGI research after partnering with Microsoft that has invested about US$13 billion into the startup. 

“In reality, however, OpenAI Inc has been transformed into a closed-source de facto subsidiary of the largest technology company in the world: Microsoft. 

“Under its new board, it is not just developing but is actually refining an AGI to maximise profits for Microsoft, rather than for the benefit of humanity,” the suit noted, adding that “this was a stark betrayal of the founding agreement.” 

Musk also alleges OpenAI and Microsoft have improperly licensed GPT-4 despite agreeing that OpenAI’s AGI capabilities would remain dedicated to humanity. 

Through the suit, Musk is seeking to force OpenAI to uphold its original mission and block it from monetising technologies developed under its nonprofit for the benefit. 

Musk asks for accounting and return of donations meant to fund its public-minded research if they are now operating for private gain. 

Musk left OpenAI’s board in 2018. According to the legal complaint, he donated over US$44 million dollars to the nonprofit between 2016 to September 2020. For the first several years, he was the largest contributor to the startup. 

In late 2022, OpenAI’s launch of ChatGPT ignited an AI arms race. 

“I like the dude. I think he’s totally wrong about this stuff,” Altman addressed Musk’s recurring doubts at a conference last year. 

“He can sort of say whatever he wants but I’m like proud of what we’re doing and I think we’re going to make a positive contribution to the world and I try to stay above all that.”  – March 2, 2024

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