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Companies / OpenAI / Elon Musk takes OpenAI to court again
CompaniesNewsOpenAI

Elon Musk takes OpenAI to court again

Tesla boss claims betrayal and deception in new lawsuit against AI company he co-founded

Alex Carter
ByAlex Carter
AI News & Big Tech Correspondent
Alex Carter writes for Aiholics, keeping readers updated on the fast-paced world of AI and Big Tech. He breaks down important news and developments from the...
- AI News & Big Tech Correspondent
Published: August 5, 2024
3 Min Read
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Elon Musk, the billionaire behind Tesla and SpaceX, has filed a new lawsuit against OpenAI, the company behind ChatGPT. This latest legal action comes just weeks after Musk dropped a similar case.

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Key points

  • Elon Musk has filed a new lawsuit against OpenAI, Sam Altman, and Greg Brockman.
  • Musk claims he was deceived into co-founding and investing in OpenAI.
  • The lawsuit alleges OpenAI abandoned its non-profit mission to pursue profits.
  • Musk is seeking to cancel OpenAI’s licensing agreement with Microsoft.
  • OpenAI denies Musk’s claims and says he left after his proposals were rejected.
  • The case highlights broader debates about AI development and regulation.
  • Musk is requesting a jury trial and various forms of relief, including damages.

Musk claims he was suckered into helping launch OpenAI in 2015. He said people like Sam Altman and Greg Brockman, who were the leaders of the company, pledged to create AI to help humanity. However, Musk argues that they eventually changed direction and went for profit making.

During its early years, Musk made a $44 million investment in OpenAI. He says he was assured that it would be a non-profit organization working on safer AI. However, according to Musk, OpenAI later got into bed with Microsoft and began prioritizing money over everything else.

The suit paints an archetypal story of selflessness against cupidity. In reference to his lawyers’ interpretation, Musk is “Shakespearean” when it comes to betrayal and deceit.

There is one particular issue raised by the lawsuit concerning Microsoft’s deals with OpenAI. The tech giant has invested approximately $13 billion in this company. This contract should be canceled by the court if Musk wins because he believes it runs counter to what OpenAI originally stood for.

Earlier on, OpenAI denied Musk’s allegations. According to them in a blog post about his previous lawsuit; he wanted Tesla or full control of OpenAI merged with him; once these suggestions were rejected by them he parted from them to start his own AI firm.

This legal battle highlights increasing fault lines within the AI sector. With artificial intelligence gaining more power and wealth, concerns over its development and control have become more critical.

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Musk has frequently voiced concern about the dangers posed by AI technology and seems set on challenging what he perceives as an abandonment of OpenAI’s initial goals. On the other hand though, supporters of OpenAI argue that even as they pursue commercial success their work still focuses on beneficial AI development only.

It is expected that as this case progresses it will raise broader issues around future Artificial Intelligence (AI), regulation thereof or finding balance between profitability versus public good in technology innovation.

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ByAlex Carter
AI News & Big Tech Correspondent
Alex Carter writes for Aiholics, keeping readers updated on the fast-paced world of AI and Big Tech. He breaks down important news and developments from the industry's top players, including OpenAI, Google, Meta, Microsoft, and NVIDIA. His goal is to present these updates in a straightforward way that’s easy to understand and genuinely helpful. What makes Alex different is that he's focused on technology that matters to real people's lives, not just for flashy headlines. He demonstrates why each news is important, answering the most important questions for readers: "Why should I care?" From major AI models to big acquisitions and new tools, Alex examines what it means for businesses, society, and end-users. When not reporting, Alex enjoys covering the trends in AI competition, tech ethics, and what's next in digital.
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