Elon Musk Sues OpenAI Over Partnership with Microsoft: Why?

Elon Musk, co-founder of OpenAI, has filed a lawsuit against the organization and its CEO, Sam Altman, alleging a departure from its original nonprofit mission.

Musk claims that OpenAI's collaboration with Microsoft for $13 billion and the secrecy surrounding its latest generative AI products violate the company's founding principles.

The complaint, filed in California state court, asserts breach of contract and seeks a jury trial along with repayment of profits earned by the company, Altman, and co-founder Greg Brockman.

Formation of OpenAI LP

OpenAI was established in 2015 as a safeguard against the perceived risks posed by artificial generative intelligence (AGI), a type of AI that can perform as well or better than humans on a wide range of cognitive tasks. Some experts fear that AGI could supplant or even dominate humans.

However, in 2019, Altman, Brockman, and Chief Scientist Ilya Sutskever established OpenAI LP, a for-profit entity within the organization.

This move transformed OpenAI from a nonprofit endeavor to a highly valued entity, with Altman credited for the company's remarkable growth.

Leadership Crisis and Microsoft Intervention

The lawsuit references a leadership crisis in the company last year, which led to Altman's temporary removal due to concerns about AI risks.

Following intervention by Microsoft, Altman was reinstated, signaling a victory for those advocating for AI commercialization. Musk's complaint suggests that OpenAI's pursuit of profit contradicts its initial nonprofit mission.

Influence of Microsoft

While Microsoft is not a defendant in Musk's lawsuit, the complaint highlights the tech giant's extensive involvement with OpenAI.

Musk has previously accused Microsoft of misappropriating content from his social media company, X, for training its AI tools. The lawsuit underscores Microsoft's influence over OpenAI and its economic leverage.

Continued Concerns About AGI

Despite leaving OpenAI in 2018, Musk remains vocal about the dangers of artificial intelligence. He perceives AGI as both an existential threat and a potential source of profit and power.

The lawsuit reflects Musk's stance on the issue and his dissatisfaction with OpenAI's perceived prioritization of financial gains over its original nonprofit mission.

"OpenAI, Inc. has been transformed into a closed-source de facto subsidiary of the largest technology company in the world: Microsoft. Under its new Board, it is not just developing but is actually refining an AGI to maximize profits for Microsoft," the lawsuit said.

Elon Musk's lawsuit against OpenAI underscores concerns about the organization's shift toward profitability and its partnership with Microsoft. The legal battle is just getting started, and more questions will be raised about the balance between commercial interests and ethical considerations in the development of advanced AI technologies.

Just recently, OpenAI and Microsoft were slapped with a copyright lawsuit as they were accused of stealing information on the internet. In short, they have been violating IP for quite a long time.