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Elon Musk sues OpenAI and Sam Altman over ‘betrayal’ of nonprofit AI mission

3 mins

Alina  Chernomorets

Published by: Alina Chernomorets

18 March 2024, 02:07PM

In Brief

Elon Musk has filed a lawsuit against OpenAI, alleging a deviation from its original mission of developing AI for humanity's benefit.

Musk claims that OpenAI has shifted to a for-profit model, focusing on commercializing AGI research, especially after partnering with Microsoft.

The lawsuit contends that OpenAI, now a closed-source subsidiary of Microsoft, prioritizes AGI development for Microsoft's profits rather than humanity.

Musk, a significant contributor to OpenAI, left its board in 2018 and declined an offer for a stake in the for-profit arm, citing principled reasons.

The legal action centers on GPT-4, which Musk argues qualifies as AGI; he seeks to compel OpenAI to adhere to its original mission and prevent monetization for private gain.

Elon Musk sues OpenAI and Sam Altman over ‘betrayal’ of nonprofit AI mission

Elon Musk has initiated legal proceedings against OpenAI, accusing the organization, co-founders Sam Altman and Greg Brockman, and associated entities of deviating from their original mission of developing AI for the betterment of humanity. Musk, who played a pivotal role in founding and financially supporting OpenAI, contends that the organization, now a prominent for-profit AI startup, has shifted its focus towards commercializing AGI (Artificial General Intelligence) research, particularly after entering into a significant partnership with Microsoft. The lawsuit alleges a departure from the initial agreement that mandated OpenAI to provide its technology freely to the public.



According to Musk's legal complaint, OpenAI, regarded as the world's most valuable AI startup, has essentially become a closed-source subsidiary of Microsoft, prioritizing AGI development for the benefit of Microsoft's profits rather than humanity. This perceived transformation, as outlined in the lawsuit, stands in stark contrast to the founding principles of OpenAI and is deemed a betrayal of the original agreement.



The lawsuit underscores Musk's concerns about OpenAI's strategic shift, which he had voiced in the past year. Despite contributing over $44 million to OpenAI between 2016 and September 2020, Musk, who left OpenAI's board in 2018, has declined an offer of a stake in the for-profit arm of the startup, citing principled reasons.



The legal action highlights a perceived strong alignment between Microsoft and OpenAI, citing a statement from Microsoft CEO Satya Nadella during a leadership shake-up at OpenAI last year. Nadella's remarks about holding all necessary IP rights, capabilities, data, and compute resources even if OpenAI were to disappear suggest a close association between the two entities, further intensifying Musk's claims of Microsoft-centric interests driving OpenAI's agenda.



The lawsuit also focuses on OpenAI's latest achievement, GPT-4, which Musk contends qualifies as AGI, representing a level of intelligence comparable to, if not surpassing, that of humans. Despite prior agreements that OpenAI's AGI capabilities would be dedicated to humanity, Musk alleges that GPT-4 has been improperly licensed by OpenAI and Microsoft.



In his legal action, Musk seeks to compel OpenAI to adhere to its original mission and prevent the monetization of technologies developed under its nonprofit status for the benefit of executives or partners like Microsoft. Additionally, the lawsuit requests the court to affirm that AI systems such as GPT-4 and other advanced models constitute artificial general intelligence beyond licensing agreements.



Musk's legal pursuit introduces a significant development in the ongoing debate about the ethical and strategic directions of powerful AI entities, emphasizing the delicate balance between innovation, corporate interests, and societal well-being. As the case unfolds, it is likely to shed light on the evolving landscape of AI governance and the responsibilities associated with advanced technologies.

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