Elon Musk Files Lawsuit Against OpenAI and CEO Sam Altman Over Alleged Breach of Contract
Tech mogul Elon Musk has initiated legal action against OpenAI and its CEO Sam Altman, alleging a breach of contract. Musk, who co-founded OpenAI in 2015, contends that the organization has strayed from its original nonprofit mission by engaging in profit-driven activities, particularly through a partnership with Microsoft valued at $13 billion and the withholding of code for its latest generative AI products.
The complaint, filed in California state court on Thursday, accuses OpenAI of violating its founding charter and seeks restitution for the alleged breach. Musk is demanding a jury trial and is calling for OpenAI, Altman, and co-founder Greg Brockman to reimburse the profits derived from their business ventures.
OpenAI was established with the aim of safeguarding against the perceived risks posed by artificial generative intelligence (AGI). However, Musk asserts that the formation of OpenAI LP, a for-profit subsidiary within the organization, and subsequent collaborations with Microsoft, represent a departure from its original nonprofit ethos.
The lawsuit highlights a leadership crisis within OpenAI last year, during which Altman was temporarily ousted from his position amid concerns about the risks associated with AI technology. Musk contends that Altman’s reinstatement, facilitated by Microsoft, underscores the company’s prioritization of profit over its purported nonprofit mission.
While Microsoft is not named as a defendant in Musk’s suit, the complaint repeatedly references the tech giant’s influence over OpenAI and its economic interests. Musk has previously accused Microsoft of intellectual property theft related to his own ventures, including his social media platform X.
In the filing, Musk portrays the current leadership of OpenAI as driven by financial gain rather than a commitment to addressing the existential threats posed by AGI. He alleges that the organization has effectively become a subsidiary of Microsoft, operating in a closed-source manner to maximize profits for its corporate partner.
Elon Musk, known for his advocacy on AI ethics and safety, departed OpenAI in 2018 but continues to express concerns about the unchecked advancement of artificial intelligence. Through this lawsuit, Musk seeks to hold OpenAI accountable for what he perceives as a deviation from its nonprofit mission and a prioritization of profit over societal welfare.
