Just In: Musk Takes OpenAI to Court!

Elon Musk has reignited his legal battle against OpenAI and its CEO, Sam Altman, by filing a new lawsuit that once again challenges the company’s direction and practices concerning artificial intelligence. The lawsuit, submitted on Monday, also targets OpenAI co-founder Gregory Brockman. Musk’s renewed legal action follows a similar lawsuit he filed earlier this year, which he subsequently withdrew.

Background of the Lawsuit

Musk, who co-founded OpenAI in 2015, initially sued the company in February. He accused the ChatGPT developer of deviating from its original nonprofit mission by withholding some of its most sophisticated AI technology for private use. The original lawsuit was unexpectedly dropped in June after OpenAI released old emails from Musk related to the company’s inception, shedding light on his initial thoughts and intentions for the AI initiative.

Details of the New Lawsuit

The latest lawsuit was filed in federal court in Northern California, unlike the previous one, which was lodged in a California state court. This new filing is nearly double the length of the original and introduces allegations of racketeering against OpenAI. Musk’s attorney, Marc Toberoff, stated, “This lawsuit bursts Defendants’ hot-air philanthropy and holds them accountable for their misrepresentations to Musk and the public. It concerns far more than a $100 billion start-up; the future of AGI lies in the balance.”

Allegations Against OpenAI Leadership

Musk’s lawsuit alleges that Altman and others “betrayed” him in a manner likened to a Shakespearean tragedy. The lawsuit states, “The perfidy and deceit are of Shakespearean proportions,” emphasizing the depth of Musk’s perceived betrayal by OpenAI’s leadership.

Last year, OpenAI experienced a significant leadership crisis when Sam Altman was abruptly dismissed from his role as CEO, only to be quickly reinstated. This leadership shuffle coincided with Microsoft securing a non-voting seat on OpenAI’s board, alongside a substantial financial investment in the AI company. However, Microsoft later relinquished its observer role in July following increased regulatory scrutiny from authorities in Europe, the UK, and the US.

Claims of Betrayal and Deviation from Mission

The lawsuit claims that OpenAI’s partnership with Microsoft fundamentally altered the company’s original mission. It states, “In partnership with Microsoft, Altman established an opaque web of for-profit OpenAI affiliates, engaged in rampant self-dealing, seized OpenAI, Inc.’s Board, and systematically drained the non-profit of its valuable technology and personnel.”

CNN has reached out to OpenAI for comment on the lawsuit. Previously, in March, OpenAI dismissed Musk’s claims as “incoherent” and “frivolous.” The company argued in court that the lawsuit should be dismissed and released a blog post containing Musk’s emails from OpenAI’s early days. These emails revealed Musk’s understanding of the need for the company to generate substantial revenue to support the computational resources necessary for its AI ambitions, contradicting Musk’s lawsuit claims that OpenAI was improperly pursuing profit.

Musk’s initial lawsuit was dropped after these emails were made public without any explanation from his legal team.

Broader Scrutiny on OpenAI

Musk’s legal actions are not the only challenges OpenAI faces. The Federal Trade Commission is investigating the company for potential consumer protection law violations. Meanwhile, the Securities and Exchange Commission is looking into whether OpenAI investors were misled, as reported by Reuters. Additionally, several prominent safety leaders have left OpenAI in recent months, citing concerns that the company prioritized rapid product development over safety considerations.

New Allegations and Legal Demands

In his new lawsuit, Musk claims Altman and Brockman “manipulated” him into co-founding OpenAI under false pretenses. The lawsuit alleges, “Elon Musk’s case against Sam Altman and OpenAI is a textbook tale of altruism versus greed. Altman, in concert with other Defendants, intentionally courted and deceived Musk, preying on Musk’s humanitarian concern about the existential dangers posed by artificial intelligence.”

The lawsuit seeks to establish “a constructive trust on Defendants’ ill-gotten gains, property, and assets traceable to Musk’s significant contributions to OpenAI.” It also calls for “a judicial determination that OpenAI, Inc.’s license to Microsoft is null and void.”

As this legal battle unfolds, it underscores the tensions and complexities within the rapidly evolving field of artificial intelligence. Musk’s lawsuit against OpenAI highlights the challenges faced by organizations striving to balance innovation, profitability, and ethical considerations in the pursuit of advancing AI technology.