Elon Musk Files Lawsuit Against OpenAI Alleging Breach of Nonprofit Agreement
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Elon Musk has filed a lawsuit against OpenAI and its CEO, Sam Altman, citing a violation of their nonprofit agreement.
The legal battle, unfolding in the Superior Court of California for the County of San Francisco, revolves around OpenAI’s departure from its foundational mission of advancing open-source artificial general intelligence (AGI) for the betterment of humanity.
Musk was a co-founder and early backer of OpenAI. According to Musk, Altman and Greg Brockman (another co-founder and current president of OpenAI) convinced him to bankroll the startup in 2015 on promises that it would remain a nonprofit.
Musk, in his legal battle, alleges that OpenAI has deviated from its core principles due to a partnership with Microsoft, asserting that this alliance prioritises proprietary advancements over the original ethos of open-source progress.
The issues raised by Musk include allegations of contract breach, fiduciary duty violation, and unfair commercial practices. He urges OpenAI to return to its nonprofit goals and is seeking a court order to stop the business exploitation of AGI technology.
The crux of the disagreement revolves around OpenAI’s recent release of GPT-4 in March 2023. Musk argues that, in contrast to its previous versions, GPT-4 embraces a shift towards closed-source models. He believes this tactic caters to Microsoft’s financial interests, ignoring OpenAI’s charitable mission.
Founded in 2015 as a nonprofit AI research institution, OpenAI transitioned into a for-profit entity in 2020. It’s reported that OpenAI has now embraced a profit-oriented approach, with annual revenues exceeding $2 billion.
Musk, who has long voiced concerns about the risks posed by AI, has called for robust government regulation and responsible AI development. He questions the technical expertise of OpenAI’s current board and highlights the removal and subsequent reinstatement of Altman in November 2023 as evidence of a profit-oriented agenda aligned with Microsoft’s interests.
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