Musk Sues OpenAI and Its Co-Founder Altman for Breach of Contract
By Mwebe Morgan
The two AI Titans are about to spill the beans on each other. So, buckle up! In the IT industry, a historic confrontation is about to take place. Elon Musk, the bold visionary behind SpaceX and Tesla, is taking on OpenAI, an AI giant he founded with Sam Altman, a research facility he assisted in founding. What about the story’s turn? It has nothing to do with improving humankind or the Benjamins. It’s all about pride.
According to Musk, OpenAI was formerly a non-profit. Altman used deception to convince him to contribute to their effort to develop open-source AI for the benefit of mankind. But then, OpenAI pulled a switcheroo. They morphed into a profit-chasing entity and slammed shut their AI source. Now, Musk is suing OpenAI and CEO Sam Altman, claiming that they have strayed from their admirable goal of helping humanity.
Even by Musk’s standards, this lawsuit is a brave move. It is like he is saying, “You can’t pose as a charity, take my funds, and then convert into a profit-making company.” He is effectively laying down the challenge. Furthermore, we are not discussing peanuts. According to reports, Musk gave OpenAI a $50–$100 million fork. This is indeed a large sum of money!
But this is where things become trickier in the tale. OpenAI didn’t just take Musk’s money and bolt. They cozied up to Microsoft and bagged a cool billion dollars. Musk has been stewing over it ever since, but nobody saw a lawsuit coming. Well, it appears his legal eagles found some loopholes.
You might be wondering, “Is this really about cash or public welfare?” Don’t be naive. This is a clash of egos, pure and simple. Musk tried to one-up OpenAI by pouring money into his own AI venture, Grok. Despite the fanfare, Grok was a dud.
I gave it a whirl for a few projects, but it was too snarky and foul-mouthed to be of any practical use.
On the flip side, OpenAI is making headway with some promising breakthroughs in SORA.
In the lawsuit, Musk’s legal team asserts Altman and co-founder Greg Brockman in 2015 courted him to establish a non-profit lab. Musk, who once warned that AI is “potentially more dangerous than nukes,” agreed. He now asserts that OpenAI has broken their agreement by becoming a Microsoft closed-source subsidiary.
There are enormous stakes involved. The discussion about the advance of artificial general intelligence, or AGI, could be the greatest technological breakthrough in human history. This simmering inferno has nothing to do with electric vehicles, reusable rockets, or human-machine interfaces. AGI could revolutionize the world like nothing else. And Musk might be trailing behind.
Does Musk think he can pull off a win? Doubtful. But he can stir the pot and give Microsoft a headache. What he plans to do with that time, only time will tell. There’s little doubt that this litigation will be extremely captivating, surpassing the drama of Depp v. Heard.
Sam Altman, the CEO of OpenAI, once called Elon Musk a “jerk.” Was it true that the Tesla CEO “truly did worry” about the hazards associated with AI?
In 2018, Elon Musk offered to lead OpenAI. However, Sam Altman and other OpenAI cofounders declined his offer. In 2023, this knowledge became public.
Semafor reported that Musk wanted to steer the company in a solo bid to outdo Google. But when his offer was rebuffed, he withdrew his funding and exited OpenAI’s board, according to the news outlet.
Source: Semafor, Business Insider
So, stay tuned, folks. I’ll keep you in the loop. And remember, while Musk’s theatrics are amusing, there’s nothing more thrilling than business and profits. That’s why other AI companies are crafting top-notch tools to help you thrive online.”
