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Elon Musk sues OpenAI and CEO Sam Altman for breach of contract

Mar 01, 2024 - cnn.com
Elon Musk is suing OpenAI, its CEO Sam Altman, and co-founder Greg Brockman, alleging that the company has strayed from its original nonprofit mission by partnering with Microsoft and keeping its AI product codes secret. Musk, who co-founded OpenAI in 2015 and later left to form his own AI company, xAI, claims that the partnership with Microsoft violates OpenAI’s founding charter and represents a breach of contract. He is seeking a jury trial and wants the company, Altman, and Brockman to return the profits they made from the business.

The lawsuit also highlights a leadership crisis at OpenAI last year that temporarily ousted Altman over concerns about the risks of AI. Despite not being named as a defendant, Microsoft is mentioned 68 times in the complaint, with Musk accusing it of having undue influence over OpenAI and benefiting economically from it. Musk, who has previously threatened to sue Microsoft, accuses the current OpenAI leaders of greed and of prioritizing profit over the potential existential threat posed by artificial general intelligence (AGI).

Key takeaways:

  • Elon Musk is suing OpenAI and its CEO Sam Altman, alleging that the company has deviated from its original nonprofit mission by partnering with Microsoft and keeping its AI product codes a secret.
  • Musk's complaint states that OpenAI's partnership with Microsoft and its shift towards profit-making violates its founding charter, constituting a breach of contract.
  • The lawsuit also highlights a leadership crisis at OpenAI last year, which resulted in Altman's temporary removal from the company over concerns about the risks of artificial intelligence.
  • Although Microsoft is not a defendant in the lawsuit, it is mentioned 68 times in the complaint, with Musk accusing it of having undue influence over OpenAI and of using its economic position to its advantage.
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