Elon Musk Files Lawsuit Against OpenAI And Sam Altman. Here's Why

Tech billionaire and X boss Elon Musk has filed a lawsuit against OpenAI and its CEO, Sam Altman, alleging a breach of contract. Musk claims that OpenAI prioritised profit and commercial interests in the development of artificial intelligence (AI), diverging from their commitment to serving the public good, the media has reported.

Filed late on Thursday in San Francisco, the lawsuit places the billionaire in conflict with the startup he co-founded and now represents as the leading figure in generative AI. This dispute arises in part due to the substantial funding from Microsoft, says a report by news agency Reuters.

Having resigned from OpenAI’s board in 2018, Musk has frequently voiced disapproval of Microsoft’s involvement with the startup. In an interview with Tucker Carlson in April of last year, Musk had remarked: “Microsoft has a significant influence, if not outright control, over OpenAI at this juncture.”

“OpenAI has been transformed into a closed-source de facto subsidiary of the largest technology company, Microsoft,” said the lawsuit, which was filed Thursday in Superior Court in San Francisco, as reported by New York Times.

The tech billionaire claimed a breach of contract, contending that Altman and co-founder Greg Brockman initially approached him to create an open-source, non-profit organisation. However, the startup, established in 2015, has shifted its focus towards profitability. He also petitioned the court to compel OpenAI to share its research and technology with the public and to prohibit the startup from leveraging its assets, including its cutting-edge AI model GPT-4, for the financial benefit of Microsoft or any individual.

Musk, who co-founded OpenAI with Altman and others in 2015, criticised the company’s multibillion-dollar partnership with Microsoft, arguing that it contradicted the organisation’s initial commitment to responsibly develop AI and share the technology with the public.

The collaboration is currently facing antitrust scrutiny in both the United States and Britain, stemming from a boardroom dispute last year at the startup. This conflict led to the abrupt removal and subsequent reinstatement of Altman, along with the establishment of a new interim board. According to the Washington Post, OpenAI intends to appoint several new board members in March. Microsoft announced in November that it would hold a non-voting, observer seat on the board.