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OpenAI fires back against Musk, claims he wanted an OpenAI for-profit | TechCrunch

Dec 13, 2024 - techcrunch.com
OpenAI has released emails and texts countering Elon Musk's lawsuit, which accuses the company of straying from its nonprofit mission. OpenAI claims Musk proposed a for-profit model in 2017 but left when he didn't receive majority equity. Musk's suggestions included merging with a hardware startup and spinning into Tesla, both of which were rejected by OpenAI. Musk resigned in 2018 and later founded xAI, which launched the AI model Grok. OpenAI asserts that Musk has declined equity offers in its for-profit wing and criticizes his legal approach.

Musk's lawsuit alleges that OpenAI is preventing xAI from securing funding by extracting non-compete promises from investors. Despite these claims, xAI recently raised $5 billion, making it one of the best-funded AI companies. Musk's motion for an injunction also accuses OpenAI and Microsoft of illegally sharing proprietary information and engaging in self-dealing, citing OpenAI's selection of Stripe, where OpenAI CEO Sam Altman has financial interests, as its payment processor. Google has reportedly called for an investigation into Microsoft's relationship with OpenAI.

Key takeaways:

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  • Elon Musk's lawsuit against OpenAI accuses the company of abandoning its original nonprofit mission, but OpenAI claims the lawsuit is misleading and driven by Musk's dissatisfaction with not having majority equity.
  • OpenAI alleges that Musk proposed merging with a hardware startup and demanded majority control, which was rejected, leading to his resignation in 2018.
  • Musk's new company, xAI, has successfully raised significant funding, despite allegations that OpenAI is discouraging investors from funding its competitors.
  • Musk's motion for an injunction accuses OpenAI and Microsoft of illegal sharing of proprietary information and self-dealing, with calls for investigation into these relationships.
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