Elon Musk Reignites Legal Battle Against OpenAI and Sam Altman with New Lawsuit

Elon Musk has launched a new lawsuit against OpenAI, CEO Sam Altman, and co-founder Gregory Brockman, renewing a contentious legal dispute over the direction and management of the artificial intelligence company he helped establish in 2015.

The lawsuit, filed Monday in federal court in Northern California, echoes Musk’s earlier claims that OpenAI has strayed from its original non-profit mission. The case, nearly double the length of Musk’s previous complaint, accuses OpenAI of prioritizing private profits over its philanthropic goals and engaging in racketeering activities.

Musk’s legal team, led by attorney Marc Toberoff, argues that OpenAI has misrepresented itself to both Musk and the public. The lawsuit portrays the situation as a dramatic betrayal, describing the actions of Altman and others as “of Shakespearean proportions.”

The lawsuit follows Musk’s previous legal action in February, where he accused OpenAI of reserving advanced AI technologies for exclusive private customers, contradicting its initial nonprofit ethos. That lawsuit was dropped in June without explanation after OpenAI published emails from Musk discussing the financial necessity for advancing AI capabilities, which appeared to undermine the lawsuit’s premise.

In the new filing, Musk alleges that OpenAI’s partnership with Microsoft significantly altered the company’s trajectory. According to the lawsuit, this collaboration led to the establishment of for-profit affiliates, the manipulation of OpenAI’s board, and the extraction of valuable technology and personnel from the nonprofit entity. The lawsuit seeks the establishment of a “constructive trust” over the assets Musk claims were wrongfully diverted from OpenAI.

This legal action comes amidst broader scrutiny of OpenAI. The Federal Trade Commission is investigating the company for potential consumer protection violations, while the Securities and Exchange Commission has looked into whether investors were misled. Recent departures of key safety leaders at OpenAI have also raised concerns about the company’s focus on rapid product development over safety considerations.

OpenAI has previously dismissed Musk’s allegations as “incoherent” and “frivolous,” and has yet to respond to this latest lawsuit. The outcome of this renewed legal challenge could have significant implications for the future governance and operational strategy of OpenAI, especially in its dealings with major partners like Microsoft.