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Elon Musk sues OpenAI and Sam Altman, alleging profit prioritization

Elon Musk sues OpenAI
Elon Musk
Elon Musk sues OpenAI

Sam Altman, who recently faced removal and then got back his CEO position at OpenAI, now confronts another challenge with this latest development as Elon Musk sues OpenAI.



Elon Musk is suing OpenAI, the organization he helped start, and its CEO, Sam Altman, alleging a breach of contract. The claim is based on their failure to fulfill the commitment to develop artificial intelligence responsibly and ensure its widespread accessibility.

Transformation into a Closed-Source Entity

The company responsible for the revolutionary generative AI chatbot, ChatGPT, has undergone a significant shift, being described as a “closed-source de facto subsidiary of the largest technology company, Microsoft,” according to a recent court filing.

Ongoing Challenges for Sam Altman

Elon Musk sues OpenAI
Elon Musk sues OpenAI
Sam Altman

This legal action is the latest development in a series of challenges for Mr. Altman. Previously ousted from his role at OpenAI by the company board, Altman briefly worked at Microsoft, OpenAI’s primary shareholder, before being reinstated.

Evolution from Non-Profit to Commercial Interests

Originally established as a not-for-profit entity, OpenAI has evolved to encompass commercial interests, leading to tensions among board members and founders.

Allegations of Mission Betrayal

In the lawsuit, Elon Musk asserts that by fostering a close association with Microsoft, OpenAI and its top executives have ignited a conflict, distorting the company’s mission. Musk alleges that, under the new board, OpenAI is not only developing but refining an AGI (artificial general intelligence) to maximize profits for Microsoft, rather than prioritizing the benefit of humanity.



The court filing highlights a crucial aspect of OpenAI’s mission to serve humanity: the commitment to making its software open-source and freely shareable.

However, contrary to this mission, the company has not followed through, opting instead to operate on a for-profit model.

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Musk’s Concerns and Legal Claims

Elon Musk, founder of the AI company xAI, contends that OpenAI lacks sufficient focus on the potential risks associated with AI. Alongside accusing OpenAI of breaching contracts, Musk’s legal claim asserts violations of fiduciary duty and involvement in unfair business practices. Mr. Musk is seeking a jury trial for these allegations.



Seeking Responses from OpenAI and Microsoft

Both OpenAI and Microsoft have been approached for comments regarding Musk’s claims.

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