Elon Musk Sues OpenAI, Claiming Betrayal of Its Goal to ‘Benefit Humanity’

Elon Musk is suing OpenAI and its CEO Sam Altman over what he says is a betrayal of the ChatGPT maker's founding aims of benefiting humanity rather than pursuing profits.
In a lawsuit filed at San Francisco Superior Court, billionaire Musk said that when he bankrolled OpenAI's creation, he secured an agreement with Altman and Greg Brockman, the president, to keep the AI company as a nonprofit that would develop technology for the benefit of the public.
Under its founding agreement, OpenAI would also make its code open to the public instead of walling it off for any private company's gains, the lawsuit says.
However, by embracing a close relationship with Microsoft, OpenAI and its top executives have set that pact “aflame” and are “perverting” the company's mission, Musk alleges in the lawsuit.
OpenAI declined to comment on the lawsuit Friday.
“OpenAI, Inc. has been transformed into a closed-source de facto subsidiary of the largest technology company in the world: Microsoft,” the lawsuit filed Thursday says. “Under its new Board, it is not just developing but is actually refining an AGI to maximize profits for Microsoft, rather than for the benefit of humanity."
AGI refers to artificial general intelligence, which are general purpose AI systems that can perform just as well as -- or even better than -- humans in a wide variety of tasks.
Musk is suing over breach of contract, breach of fiduciary duty, and unfair business practices. He also wants an injunction to prevent anyone, including Microsoft, from benefiting from OpenAI's technology.
Those claims are unlikely to succeed in court but that might not be the point for Musk, who is getting his take and personal story on the record, said Anupam Chander, a law professor at Georgetown University.
“Partly there’s an assertion of Elon’s founding role in OpenAI and generative AI technology, in particularly his claim he named OpenAI and he hired the key scientist and that he was the primary funder of its early years,” Chander said. “In some sense it’s a lawsuit that tries to establish his own place in the history of generative AI.”
Musk was an early investor in OpenAI when it was founded in 2015 and co-chaired its board alongside Altman. In the lawsuit, he said he invested "tens of millions” of dollars in the nonprofit research laboratory.
Musk resigned from the board in early 2018 in a move that OpenAI said at the time would prevent conflicts of interest as the Tesla CEO was recruiting AI talent to build self-driving technology at the electric car maker. “This will eliminate a potential future conflict for Elon,” OpenAI said in a February 2018 blog post. Musk has since said he also had disagreements with the startup's direction, but he continued to donate to the nonprofit.
Later that year, OpenAI filed papers to incorporate a for-profit arm and began shifting most of its workforce to that business, but retained a nonprofit board of directors that governed the company. Microsoft made its first $1 billion investment in the company in 2019 and the next year, signed an agreement that gave the software giant exclusive rights to its AI models. That license is supposed to expire once OpenAI has achieved artificial general intelligence, the company has said.
Its unveiling of ChatGPT in late 2022 bought worldwide fame to OpenAI and helped spark a race by tech companies to capitalize on the public's fascination with the technology.
When the nonprofit board abruptly fired Altman as CEO late last year, for reasons that still haven't been fully disclosed, it was Microsoft that helped drive the push that brought Altman back as CEO and led most of the old board to resign. Musk's lawsuit alleged that those changes caused the checks and balances protecting the nonprofit mission to “collapse overnight.”
Tags: Keywords:Related Articles
Indosat Ooredoo Hutchison Promotes AI Use in Mining Sector
Indosat Ooredoo Hutchison recently hosted the Indonesia AI Day for Mining Industry in Jakarta.Indosat Hosts AI Day to Accelerate Digital Transformation in Mining Industry
Indosat Ooredoo Hutchison's AI Day highlights AI's role in transforming Indonesia's mining sector, boosting efficiency and sustainability.Two to Stand Trial in President Prabowo Deepfake Scam
Two suspects who used AI deepfakes of President Prabowo in an online scam are set to stand trial after police handed over their case.Kearney: Indonesia Has Strong AI Potential but Needs More Education
Asia Pacific firms eye AI-driven growth, but most still in early adoption.‘Jumbo’ Animator Denis Kurniawan: AI Lacks Heart and Creativity in Animation
Denis Kurniawan, animator for Jumbo, says AI lacks the emotional depth needed in animation, stressing the importance of human creativity.16 Tesla EVs Destroyed in Fire in Rome as Police Investigate Possible Arson
Tesla Italy said that it is cooperating with police and that it had turned over surveillance video from the vehicles themselves.Australian Health Tech BrainEye Sets Sights on Indonesian Sports Industry, PSSI Deal
BrainEye lets footballers screen for concussions using an AI-driven eye-tracking technology.AI and the Challenges of Democracy in Indonesia
AI is reshaping Indonesian democracy, fueling both innovation and misinformation.VP Gibran Tells UPH Students to Embrace AI
UPH becomes the first Indonesian university to have a faculty dedicated for artificial intelligence (AI).'In DOGE We Trust': House GOP Governs by Embracing Trump's Effort to Cut Government
“The Republican majority just voted to hand a blank check to Elon Musk," said Representative Katherine Clark of Massachusetts.The Latest
Deepfake Fraud On The Rise: Police Arrest Three Scammers Using Governors' Videos
East Java Police bust a deepfake scam syndicate that manipulated governors' videos to lure victims with fake motorcycle sales.Conclave to Elect New Pope to Begin May 7 as Cardinals Seek Unity
Cardinals set May 7 for the conclave to elect Pope Francis' successor, seeking unity amid global diversity and lingering tensions.Indonesian Banks Pass Stress Test Amid US Tariffs, Depreciating Rupiah: OJK
OJK stress test finds Indonesian banks resilient amid global uncertainty, though rising loan risks pose a challenge.President Prabowo Approves Task Forces to Address Tariffs, Unemployment, and Deregulation
Indonesia forms three task forces to tackle economic issues, focusing on US tariffs, job creation, and regulatory reforms amid global uncertPrabowo Sees Danantara Amassing $1 Trillion in Assets
Prabowo forecasts Danantara’s assets to surpass $1 trillion, aiming to transform state firms and boost Indonesia’s economic strength.Most Popular
