Unveiling the Truth: Musk’s Stand on OpenAI and Microsoft’s Influence

Elon Musk

In a surprising turn, Tesla Inc. and SpaceX CEO Elon Musk has filed a lawsuit (first reported by the BBC) against OpenAI, the creators of ChatGPT, alleging a departure from the organization’s original principles established in 2015.

Musk, along with OpenAI boss Sam Altman, founded the company with a vision of a non-profit, open-source mission aimed at “benefiting humanity.” However, the lawsuit contends that the organization has shifted its focus towards “maximizing profits” for major investor Microsoft, straying from its original altruistic intentions.

OpenAI, which has yet to respond to these claims, was initially established with the ambitious goal of creating artificial general intelligence (AGI), capable of performing tasks like a human. Additionally, it was set up as a not-for-profit entity, signaling a commitment to non-profitability.

The lawsuit, filed in San Francisco, asserts that under these conditions, Musk agreed to co-found OpenAI alongside Altman and co-founder Greg Brockman.

He left three years later.

“This case is filed to compel OpenAI to adhere to the Founding Agreement and return to its mission to develop AGI for the benefit of humanity, not to personally benefit the individual Defendants and the largest technology company in the world,” the lawsuit states.

The latest legal move comes in the wake of a report by the Wall Street Journal revealing US regulators’ investigation into ChatGPT creator OpenAI. This probe centers around potential investor deception, following a tumultuous period in OpenAI’s boardroom back in November 2023.

During this time, OpenAI boss Sam Altman was abruptly ousted from the board, only to be reinstated as the head honcho a few days later. The board cited Altman’s alleged lack of transparency in communications, leading to a loss of confidence in his leadership.

This internal struggle didn’t just stay within OpenAI’s walls – Microsoft found itself drawn into the fray, even extending offers to hire any OpenAI staff who decided to leave.

Elon Musk weighed in on the situation with a post on X, expressing his concern, stating he was “very worried” about the turn of events.

In the latest twist of events, Elon Musk’s legal team has raised concerns in the lawsuit, pointing to what they call “stunning developments” that highlight Microsoft’s growing influence over OpenAI.

According to the lawsuit, they argue that OpenAI’s technology, including the closed-source GPT-4, is primarily serving the proprietary interests of software giant Microsoft, signaling a shift from the original non-profit mission.

Microsoft initially backed OpenAI with a hefty $1 billion investment in 2019. This came shortly after OpenAI, previously a non-profit, announced a new “capped profit” structure that would allow for investment.

Fast forward to January 2023, when Microsoft’s investment in OpenAI blossomed into a multi-year, multi-billion-dollar partnership (now estimated to be over $13 billion), following the launch of OpenAI’s chatbot, ChatGPT.

Now, this high-profile partnership is under the microscope of regulators in the UK, EU, and the US, as they scrutinize the implications and potential consequences.

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About Ari Haruni 145 Articles
Ari Haruni is the Co-Founder & CEO of Wall Street Pit.

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