Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Musk's amended lawsuit against OpenAI names Microsoft as defendent | TechCrunch

Nov 15, 2024 - techcrunch.com
Elon Musk's lawsuit against OpenAI, accusing the company of abandoning its nonprofit mission, has been amended to include new defendants such as Microsoft, Reid Hoffman, and Dee Templeton. The suit alleges that OpenAI is trying to eliminate competitors like Musk's AI company, xAI, by preventing investors from funding them and unfairly benefiting from Microsoft's resources. The complaint also accuses Hoffman and Templeton of facilitating agreements between Microsoft and OpenAI that could violate antitrust laws.

The lawsuit also includes new plaintiffs, including Neuralink executive Shivon Zilis, who has been described as an "injured employee" under California Corporations Code. Zilis, who has close ties to Musk, allegedly raised concerns over OpenAI's dealmaking that were ignored. The lawsuit maintains that OpenAI profited from Musk's early involvement but failed to uphold its nonprofit pledge to make its AI research available to all.

Key takeaways:

  • Musk's lawsuit against OpenAI, which was withdrawn in July, has been revived in August with new defendants including Microsoft, LinkedIn co-founder Reid Hoffman, and former OpenAI board member and Microsoft VP Dee Templeton.
  • The suit alleges that OpenAI is trying to eliminate competitors such as Musk’s AI company, xAI, and is unfairly benefitting from Microsoft’s infrastructure and expertise in a "de facto" merger.
  • The complaint alleges that Hoffman's position on the boards of both Microsoft and OpenAI while also a partner at Greylock, the investment firm, gave him a privileged and illicit view into the companies’ dealings.
  • The amended complaint also includes Neuralink exec and ex-OpenAI board member Shivon Zilis as a new plaintiff, who has standing as an “injured employee” under California Corporations Code and has raised concerns over OpenAI’s dealmaking internally.
View Full Article

Comments (0)

Be the first to comment!