In a twist, Musk, who was among the founders of OpenAI, sued the company and its CEO, Sam Altman, alleging a breach of contract, breach of fiduciary duty, and unfair business practices. Musk claimed that OpenAI's multi-billion dollar deal with Microsoft was a betrayal of its founding commitment to benefit humanity over profit. OpenAI responded by revealing emails showing Musk supported making OpenAI a for-profit company and had pushed for it to merge with Tesla.
Key takeaways:
- Elon Musk's AI startup, xAI, is expected to reach an $18 billion valuation after its current funding round, in which it is expected to raise $6 billion.
- xAI's pitch deck includes details about Musk’s other businesses, Tesla and SpaceX, and says xAI would be able to be trained using data from the social media platform X, which Musk owns.
- In March, Musk made xAI’s rival to ChatGPT, the AI chatbot assistant, Grok-1, open-source.
- Musk sued OpenAI and its chief executive, Sam Altman, alleging its multi-year, multi-billion dollar deal with Microsoft was a betrayal to its founding commitment of benefiting humanity over profit.