Elon Musk, has filed a lawsuit against OpenAI and its Chief Executive Officer, Sam Altman, for the breach of founding agreement and fiduciary duty, and unfair business practices, a lawsuit filed on Thursday in San Francisco says.
Musk alleges that the AI company has violated its founding agreement by prioritizing profits over the intended benefits to humanity.
The lawsuit, lodged late on Thursday in a San Francisco court, represents a notable escalation in the ongoing feud between tech industry giants regarding the trajectory of artificial intelligence. It sets the stage for a courtroom confrontation between Musk, one of the wealthiest individuals globally, and Microsoft, the world's most valuable company, which has a substantial stake in OpenAI, along with Altman, a prominent figure in Silicon Valley.
At the heart of the dispute is OpenAI's evolving relationship with Microsoft, which Musk says, that it diverges from the company's original mission of fostering public, open-source AI.
When Musk co-founded OpenAI in 2015 alongside Altman and Greg Brockman, their aim was to establish a nonprofit entity dedicated to advancing AI for the greater good, countering what Musk perceived as the undue dominance of Google in the field.
According to the court filing, Musk and his co-founders committed to pursuing a nonprofit approach "for the benefit of humanity," rather than serving the interests of any particular corporation. However, tensions arose when Musk clashed with Altman over control and the proposed creation of a for-profit arm within OpenAI. Musk subsequently ceded his role as co-chair in 2018 and curtailed his financial support.
Microsoft entered the picture as a major investor, deepening its ties with OpenAI through significant investments, culminating in a $13 billion deal last year. This transaction effectively granted Microsoft a substantial stake in the earnings of OpenAI's for-profit division.
Despite the nonprofit governance structure, last year witnessed upheaval within OpenAI when the board terminated Altman's leadership role due to alleged inconsistencies in his communications with the board. The decision triggered internal discord, leading to Altman's eventual reinstatement as CEO but without a position on the board.
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