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Elon Musk sues OpenAI, CEO, claiming betrayal of its goal to benefit humanity

Mar 01, 2024 - abcnews.go.com
Elon Musk is suing OpenAI and its CEO Sam Altman, alleging a betrayal of the company's founding aims of benefiting humanity rather than pursuing profits. Musk claims that OpenAI, which he helped fund, was supposed to remain a nonprofit and make its AI technology code public. However, he accuses the company of breaking this pact by developing a close relationship with Microsoft, thereby becoming a "closed-source de facto subsidiary" of the tech giant and focusing on profit maximization.

Musk's lawsuit, filed at San Francisco Superior Court, accuses OpenAI of breach of contract, breach of fiduciary duty, and unfair business practices. He is seeking an injunction to prevent anyone, including Microsoft, from benefiting from OpenAI's technology. Musk, who was an early investor in OpenAI and co-chaired its board, resigned in 2018 but continued to donate to the nonprofit. He alleges that the nonprofit mission's checks and balances collapsed after the board fired and then reinstated Altman as CEO, with Microsoft's influence.

Key takeaways:

  • Elon Musk is suing OpenAI and its CEO Sam Altman, alleging a betrayal of the company's founding aims to benefit humanity rather than pursue profits.
  • Musk claims that OpenAI, which he helped fund, has violated its agreement to remain a nonprofit and to make its code publicly available, instead becoming a "closed-source de facto subsidiary" of Microsoft.
  • The lawsuit alleges that OpenAI is now developing an artificial general intelligence (AGI) to maximize profits for Microsoft, rather than for the benefit of humanity.
  • Musk is seeking an injunction to prevent anyone, including Microsoft, from benefiting from OpenAI's technology. He also alleges breach of contract, breach of fiduciary duty, and unfair business practices.
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