Elon Musk Takes on OpenAI

Explosive Lawsuit Targets Secret Microsoft Deal!

The tech billionaire Musk has launched a new lawsuit against OpenAI and its CEO, Sam Altman, alleging breach of contract and fraud, especially regarding the AI development firm partnership with Microsoft. This is Musk’s second legal challenge against Altman.

Musk claims OpenAI deviated from its mission to develop AI for humanity’s benefit. He accuses Altman of collaborating with Microsoft to form illicit affiliates, diverting assets and staff from the artificial intelligence research organization’s nonprofit arm. The lawsuit, filed in California’s Northern District, seeks to nullify OpenAI’s exclusive license with Microsoft for GPT-4’s code, demanding triple damages and the return of profits. Altman, president Greg Brockman, and numerous subsidiaries are named in the suit.

In Hollywood, emerging AI tools like Sora are crucial in production, raising concerns about monopolization. Musk’s lawyer, Marc Toberoff, emphasizes: “This case is about more than financial restitution; it impacts the future of AGI”. Artificial general intelligence (AGI) is a field of theoretical AI research that attempts to create software with human-like intelligence and the ability to self-teach.

Musk’s lawsuit cites messages from Altman promising that OpenAI’s technology would remain nonprofit. He alleges the prominent tech entrepreneur and investor misled him and transformed his tech giant into a for-profit entity, contrary to their agreement. Initially, Sam Altman’s endeavor aimed to open-source technology for public benefit, barring private gains. However, the creator of  Tesla claims Microsoft’s early influence on OpenAI, including offering discounts for promotional support, was objectionable.

After leaving OpenAI’s board in 2018 due to Tesla-related conflicts, Musk asserts Altman formed a range of business-driven entities, including OpenAI, L.P., diverting nonprofit resources. This restructuring allegedly aimed for financial gain through a complex subsidiary network, undermining the artificial intelligence lab original goals.

The lawsuit also accuses Altman of misrepresenting facts to the board and engaging in self-dealing, benefiting companies he has stakes in, such as Reddit and Rain. Allegations include a $51 million chip deal and a potential agreement with Helion Energy for electricity to power OpenAI’s data centers. Former board members, including Helen Toner, criticized Altman for compromising AI safety protocols, accusing him of lying. The lawsuit claims Altman and Microsoft influenced board decisions to prioritize profit over safety.

This lawsuit follows Musk’s earlier, unexplained withdrawal of a similar suit against the same company. Elon’s criticism of OpenAI’s shift from its nonprofit roots aligns with his founding of xAI, valued at $24 billion, focusing on ethical AI development.

The CEO of SpaceX and Tesla is represented by Marc Toberoff, known for high-profile copyright cases. Toberoff aims to challenge OpenAI’s corporate integrity and uphold ethical AI standards.

SOURCE : The Hollywood Reporter