In the updated lawsuit, Musk's lawyers argue that OpenAI is trying to eliminate competitors like xAI by asking investors not to fund them. Despite this, Kushner praised Musk's intentions and expressed confidence in his actions. Thrive Capital, which is not listed as an investor in xAI or any direct OpenAI competitor, also reportedly has an option to invest an additional $1 billion in OpenAI next year if the company hits its revenue goal of $11.6 billion.
Key takeaways:
- Elon Musk is suing OpenAI, accusing the company of abandoning its original mission as a nonprofit organization. Despite this, Josh Kushner, founder of Thrive Capital and a key investor in OpenAI, expressed his admiration and respect for Musk.
- Musk has also launched an OpenAI competitor, xAI, and his lawsuit names OpenAI CEO Sam Altman and co-founder Greg Brockman as defendants. Microsoft, its current board member Reid Hoffman, and former OpenAI board member and Microsoft VP Dee Templeton have also been named as new defendants.
- Thrive Capital was the lead backer of OpenAI’s latest $6.5 billion round, which valued the company at $157 billion. Kushner’s fund contributed $1.3 billion of that capital, with an option to invest an additional $1 billion in OpenAI next year at the same valuation if the company hits its revenue goal of $11.6 billion.
- OpenAI reportedly asked its investors to avoid backing a specific list of other AI companies, including Musk’s xAI. In the updated lawsuit, Musk’s lawyers argue that OpenAI is now “actively trying to eliminate competitors” like xAI by “extracting promises from investors not to fund them.”