The lawsuit, which some experts believe is a stretch, also raises a strong policy argument about the potential issues of a company launching as a non-profit, collecting pre-tax donations, and then transferring the IP into a for-profit venture. One expert suggested the lawsuit should have been filed in Delaware, where OpenAI was formed, rather than California. The case could potentially reach the Supreme Court due to jurisdictional issues.
Key takeaways:
- Elon Musk has filed a lawsuit against OpenAI, CEO Sam Altman and president Greg Brockman, alleging breach of contract, breach of fiduciary duty, and unfair competition.
- The lawsuit centers around the claim that OpenAI prioritized profits and commercial interests in developing artificial general intelligence (AGI) over its duty to protect the public good.
- Legal experts believe that while Musk makes a strong policy argument, the lawsuit is a stretch as the agreements do not clearly exclude OpenAI from having closed source technologies or profiting from them.
- One expert suggests that the lawsuit should have been filed under Delaware's business-friendly jurisdiction, not California, as all of the OpenAI corporate and nonprofit entities were formed there.