Elon Musk has filed a lawsuit against OpenAI and Microsoft, alleging that OpenAI has deviated from its original non-profit mission. Musk, a co-founder of OpenAI, claims the organization has become profit-driven and aims to prevent its partnership with Microsoft. OpenAI responded by highlighting Musk’s previous support for a for-profit structure and sharing correspondence that contradicts his current stance. Tensions have escalated as Musk critiques OpenAI’s direction while promoting his own AI venture.
Elon Musk’s Legal Battle Against OpenAI
On November 14, 2024, Elon Musk initiated a lawsuit against OpenAI and Microsoft. The CEO of Tesla and SpaceX, who now competes with Sam Altman’s enterprise through his own venture, xAI, accuses OpenAI of straying from its foundational mission by transitioning away from its non-profit origins. Musk is seeking a ruling from the U.S. legal system to prevent OpenAI from profiting, particularly by terminating its collaboration with Microsoft. Notably, Musk was one of OpenAI’s co-founders but departed before the launch of ChatGPT, which marked a significant turning point for the organization.
OpenAI’s Response to Musk’s Accusations
In a comprehensive blog post released on December 13, OpenAI addressed Musk’s criticisms head-on. The title of the post, “Elon Musk Wanted a For-Profit OpenAI,” suggests that Musk’s claims are not entirely consistent with his past actions. The company included several exchanges between Musk and Altman, shedding light on their discussions. While this isn’t the first instance of OpenAI pointing out the contradictions within Musk’s narrative, some of the documents they shared were previously undisclosed.
Musk has long maintained that OpenAI was established with his funding for a non-profit mission focused on advancing artificial intelligence research. The former advisor to Donald Trump, who frequently shares his discontent with OpenAI, accuses the organization of transforming into “ClosedAI.” This shift has left Musk frustrated, prompting him to demand a return to OpenAI’s original non-profit model, insisting that the company should not pursue profit.
Supporters of Musk view this conflict as a noble clash—Musk standing for research integrity against Altman’s capitalist ambitions. However, the documents released by OpenAI suggest a more complex reality. As early as November 2015, before OpenAI was officially announced, Musk questioned the viability of a non-profit structure. In an email to Altman, he expressed doubts about the optimality of the organization’s framework, suggesting it might be better to operate as a standard C corporation alongside a non-profit.
By early 2017, OpenAI recognized the need for funding and computational resources to propel its development. Musk assured the team he would find cost-effective solutions for their computing needs. However, as concerns grew about China’s advancements in AI, Musk’s stance evolved, leading to discussions about forming a profitable entity, which he ultimately supported.
In the fall of 2017, Musk proposed holding a significant ownership stake in OpenAI. He communicated that this was not about exerting control, but rather a means to secure funding for ambitious projects like establishing a city on Mars. In a detailed email sent on September 13, 2017, Musk sought multiple board positions and the CEO role, envisioning OpenAI as a personal venture akin to Tesla and SpaceX.
On September 15, 2017, Musk established a new entity, “Open Artificial Intelligence Technologies, Inc.”, with the intention of acquiring OpenAI. Although OpenAI nearly accepted Musk’s proposal, they ultimately declined, citing concerns over potential unilateral control over artificial general intelligence (AGI) and the risks of merging Tesla with OpenAI to create a profit-driven entity.
Despite ongoing discussions, tensions escalated, leading Musk to express his dissatisfaction with OpenAI’s direction and his withdrawal of funding. His frustrations continued as he criticized OpenAI’s progress, likening it to competitors falling behind due to ego. Meanwhile, OpenAI’s success surged, elevating its value into the billions, leaving Musk unable to reclaim his investments in a non-profit setting.
In response to these developments, Musk has launched a campaign against AI advancements while simultaneously introducing his own rival to OpenAI. His efforts seem aimed at undermining a company he believes has deviated from its original intent, as the political landscape shifts in favor of Musk’s ambitions during Donald Trump’s presidency.