OpenAI gained immense attention following the introduction of the influential ChatGPT program. Elon Musk provided financial support to the company during its inception. However, the billionaire is now taking legal action against OpenAI and its CEO, Sam Altman.
Musk initiated legal proceedings at the San Francisco Superior Court. He alleged that he had reached an agreement with Altman and President Greg Brockman to maintain the artificial intelligence company as a nonprofit, ensuring public access to its technology. Musk asserted that they had agreed to keep the code open to the public instead of restricting access for financial gain.
According to the lawsuit, OpenAI allegedly disregarded the Founding Agreement in 2023 by entering into a partnership with Microsoft. The lawsuit contends that the company’s new board is focusing on refining and advancing the technology to generate maximum profits for Microsoft, rather than prioritizing its benefits for humanity.
Established in 2015, OpenAI counted Elon Musk among its investors and co-chairs of the board. Musk asserts that he contributed millions to the company. However, in 2018, the Tesla founder stepped down from the board, citing the need to avoid conflicts of interest as the automobile manufacturer started attracting talent for its AI division.
In the same year, the company transitioned from its non-profit status, maintaining its board while transferring nearly all its employees to the for-profit division. Microsoft then injected $1 billion into the for-profit sector the following year and secured an agreement granting the tech giant sole rights to the AI program.
Legal experts speculate that the lawsuit could face challenges due to the absence of written documentation for these claims, which are purportedly based on verbal agreements. Musk contends that the agreement was formalized when OpenAI was established as a corporation.
Paul Barrett, a professor at New York University Law School, expressed doubt about the validity of the lawsuit. He suggested that the company probably engaged legal counsel to ensure the transaction complied with the law. Barrett added that it’s challenging to view Elon Musk’s lawsuit seriously, given that he operates a for-profit AI company that competes with OpenAI.
