Musk Files Lawsuit Against OpenAI, Cites $13B Microsoft Partnership As Breach

Elon Musk has filed a lawsuit against OpenAI and its CEO, Sam Altman, alleging a departure from the organization's original nonprofit mission. Musk, a co-founder of OpenAI in 2015, has since distanced himself, establishing his own AI venture named xAI.

The lawsuit, recently filed in a California state court, claims that OpenAI's $13 billion collaboration with Microsoft and the secretive nature of its latest generative AI products breach the principles outlined in OpenAI's founding charter.

Musk seeks a jury trial and financial restitution from OpenAI, Altman, and co-founder Greg Brockman, targeting profits accrued from the business, reported CNN. OpenAI, originally created to safeguard against perceived threats of artificial generative intelligence (AGI), shifted in 2019 when Altman, Brockman, and Chief Scientist Ilya Sutskever formed OpenAI LP, a for-profit entity. This strategic move, credited to Altman, skyrocketed OpenAI's valuation to $90 billion in just a few years, prompting accusations of forsaking the nonprofit mission and breaching the founding charter.

The lawsuit also touches upon a leadership crisis last year that temporarily ousted Altman from OpenAI, supposedly due to concerns about AI risks. The opaque nature of the board's deliberative review process and Altman's reinstatement, portrayed as a victory for commercializing AI technology, are highlighted.

Musk's allegations focus on Microsoft's influential role over OpenAI, despite not being named as a defendant. According to Guardian, Microsoft is extensively mentioned in the lawsuit, raising concerns about the company's control and economic leverage. Musk had previously hinted at potential legal action against Microsoft, accusing them of using content from his social media company, X, for training Microsoft's AI tools.

The lawsuit contends that OpenAI has become a closed-source subsidiary of Microsoft, actively refining AGI to maximize profits. Musk portrays OpenAI's current leadership as driven by greed, contrasting his perspective with those viewing AGI as a lucrative source of profit and power. Although Musk left OpenAI in 2018, he continues to advocate against the perceived dangers of AI development.