Elon Musk has taken legal action against OpenAI and its CEO, Sam Altman, alleging that the organization’s collaboration with Microsoft is undermining its original nonprofit mission.
Musk’s lawyers argue that OpenAI has deviated from its initial purpose and has become a closed-source subsidiary of Microsoft, prioritizing profits for the tech giant rather than serving humanity as intended.
Breach of Contract Allegations
In the lawsuit filed on Thursday, Musk’s legal team also named OpenAI cofounder Greg Brockman, claiming that the company’s transition to a “capped-profit” division violates its founding agreement from late 2015.
The lawsuit cites the founding agreement, which stated OpenAI’s commitment to developing technology for the public benefit and open-sourcing it when applicable. Musk’s lawyers assert that OpenAI’s current direction contradicts this commitment.
Evolution of OpenAI’s Structure
OpenAI underwent a significant transformation in 2019 when it established OpenAI LP, a hybrid for-profit and nonprofit entity. This restructuring aimed to provide investors and employees with a “capped return” while directing any excess profits to the nonprofit arm.
Originally founded in December 2015 as a nonprofit research lab by Altman, Musk, and Brockman, OpenAI saw Musk’s departure in 2018. However, Musk’s legal team claims that he continued to contribute to the organization until mid-September 2020.
Concerns Over AGI Development
The lawsuit also raises concerns about OpenAI’s secrecy surrounding GPT-4 and its focus on artificial general intelligence (AGI). Musk has expressed apprehension about the potential dangers of AGI, particularly in the hands of for-profit entities like Google.
In recent months, Musk has been vocal about his dissatisfaction with OpenAI’s ownership structure and profit-oriented approach. He questioned the legality of OpenAI’s structure and declined shares offered to him, citing ethical concerns.
Microsoft’s Involvement and Response
Microsoft’s significant investments in OpenAI, including its initial contribution in 2019, have raised questions about the tech giant’s influence on the organization. However, Microsoft CEO Satya Nadella has emphasized the importance of good governance rather than control over OpenAI.
Despite Musk’s legal action and criticisms, OpenAI has not responded to requests for comment from Business Insider, leaving questions unanswered about the future direction of the organization and its relationship with Microsoft.
