💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Musk sues ChatGPT-maker OpenAI for breaching founding principles

Published 03/01/2024, 05:52 AM
© Reuters

Investing.com -- Elon Musk has sued ChatGPT-maker OpenAI, accusing the artificial intelligence darling he helped establish of violating its central goal of aiding humanity.

In a filing in San Francisco on Thursday, Musk said that OpenAI was founded as a not for profit AI lab that would attempt to compete with tech giants like Alphabet-owned Google, although with the express purpose of "benefit[ing] humanity, not [...] a for-profit company seeking to maximize" shareholder returns.

However, he alleged that while OpenAI continues to "profess that charter," it has been "transformed into a closed-source de facto subsidary" of Microsoft (NASDAQ:MSFT), one of its biggest backers.

"Its technology [...] is closed-source primarily to serve the proprietary commercial interests of Microsoft," the lawsuit said.

Musk also took aim at OpenAI's leadership, which underwent a roller-coaster 2023 that saw the dismissal and eventual reinstatement of Chief Executive Sam Altman. Musk argued that Altman and President Greg Brockman used Microsoft's "leverage over OpenAI" to orchestrate the ouster of board members who had been responsible for safeguarding the firm's original mission.

New board members that were "hand-picked by Altman and blessed by Microsoft" were then appointed, according to the suit. It also claimed that these officials are "ill equipped by design to make an independent determination of whether and when OpenAI has attained [artificial generative intelligence] -- and hence when it has developed an algorithm that is outside the scope of Microsoft’s license."

OpenAI, Musk, and Microsoft all did not respond to requests for comment, Reuters reported.

OpenAI is planning to name several additional board members in March, The Washington Post reported on Thursday, as regulatory scrutiny on the firm intensifies. Other media reports have said that the U.S. Securities and Exchange Commission was investigating whether OpenAI misled investors during the major executive-level upheaval. 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.