Elon Musk sues Sam Altman, OpenAI over agreement breach

Elon Musk has initiated a lawsuit against Sam Altman and OpenAI, alleging that they have strayed from their non-commercial foundation. The legal dispute, spotlighted in a recent document submitted to the Superior Court of California in San Francisco County, centers around OpenAI’s partnership with Microsoft, which Musk claims diverges from the organization’s original mission to promote open-source artificial general intelligence (AGI) for humanity’s advantage.

In his lawsuit, Musk lists several grievances, including violations of contract, breach of fiduciary duty, and engaging in unfair competitive practices. He is calling for OpenAI to adhere again to its open-source commitments and is seeking a court injunction to halt any profit-driven use of AGI technology.

Musk points to the release of ChatGPT-4 in March 2023 as a significant departure from OpenAI’s ethos. He criticizes the model for being proprietary, benefiting Microsoft financially, and moving away from the nonprofit objectives set at OpenAI’s inception.

Originally established as a nonprofit entity in 2015, OpenAI transitioned into a commercial powerhouse by 2020, pursuing profitability. Critics, Musk included, argue that the organization has shifted its focus towards revenue generation and rapid development at the expense of societal benefit.

The Financial Times reports, based on insiders familiar with OpenAI’s finances, that the organization’s income now surpasses $2 billion yearly. This revenue surge is largely thanks to the success of ChatGPT, marking OpenAI as one of the tech industry’s most rapidly expanding entities.

Musk, who views AI as a potential risk to human society, has been a vocal advocate for stringent regulation and careful management of AI advancements. He suggests that gaining a deep understanding of AI is essential for addressing its challenges.

Moreover, Musk criticizes the current OpenAI board’s lack of technical expertise in AGI, referencing the controversial dismissal and reappointment of Altman in November 2023 as indicative of a profit-driven strategy, purportedly to align with Microsoft’s financial interests.

Having served on OpenAI’s board until 2018, Musk underscores the dispute between the board and Altman over the development of ChatGPT-4 and subsequent AGI technologies, voicing apprehensions regarding their implications for public safety.