Elon Musk has revived a federal lawsuit against Sam Altman and Greg Brockman, alleging manipulation into co-founding OpenAI. Filed Monday, August 5, the lawsuit claims Musk was misled into investing in OpenAI under the belief it would remain a nonprofit dedicated to humanitarian goals.
Musk’s Allegations
Musk asserts that Altman and Brockman deceived him by emphasizing the nonprofit structure of OpenAI, which was established in December 2015. Musk, an early investor, claims he was assured that the organization’s focus would be on safety and openness, not shareholder value. However, in 2019, OpenAI transitioned to a for-profit model, forming OpenAI LP.
This shift, Musk alleges, was part of a scheme involving Altman, Brockman, and Microsoft, which led to the creation of a complex network of for-profit affiliates engaged in self-dealing.
The lawsuit further accuses Microsoft, a significant investor in OpenAI, of deepening its entrenchment in the company. Microsoft initially invested $1 billion in OpenAI in 2019, with the partnership expanding in 2023 to a multi-year, multi-billion-dollar agreement reportedly worth $10 billion.
Musk alleges that Microsoft sought to make OpenAI dependent on its cloud computing services, contrary to the original nonprofit mission.
Previous Lawsuit
This lawsuit follows a similar one Musk filed and later withdrew in California earlier this year. The previous lawsuit, which was pulled just before a judge’s ruling, also claimed OpenAI had abandoned its altruistic goals. In response to Musk’s March lawsuit, OpenAI reiterated its mission to ensure artificial general intelligence (AGI) benefits all of humanity and emphasized a commitment to safety and beneficial use.
The current lawsuit highlights a longstanding power struggle between Musk and Altman. Before leaving OpenAI in 2018, Musk reportedly wanted to take control of the company, fearing it was lagging behind Google’s DeepMind. OpenAI’s founders resisted, leading to Musk’s departure from the board.
Publicly, Musk cited conflicts with his role at Tesla for his resignation, but internal communications revealed his push for a sustainable revenue model, suggesting OpenAI should attach to Tesla.
Musk’s Ongoing AI Concerns
The revived lawsuit also brings attention to Musk’s long-standing concerns about AI. Musk has frequently expressed fears about AI’s potential dangers, advocating for regulatory oversight.
In 2018, Musk likened the intelligence gap between AI and humans to that between humans and cats. In April 2023, he warned of AI’s potential to cause “civilization destruction” and supported a petition for a six-month pause in AI development after GPT-4’s release.
Despite his criticisms, Musk has invested heavily in AI through his own ventures.
He has developed Dojo, a supercomputer for Tesla’s self-driving cars, and founded xAI in March 2023 to compete with OpenAI. xAI raised $6 billion in May 2024 and is valued at $24 billion, aiming to understand the universe’s true nature. However, xAI has faced criticisms similar to those Musk directs at OpenAI. Experts have warned that Grok, xAI’s chatbot, risks spreading biases and misinformation.
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Left: JASON REDMOND/AFP via Getty Images; Right: Gonzalo Fuentes/REUTERS
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