OpenAI has responded to the lawsuit filed by Elon Musk, CEO of Tesla and SpaceX, stating that Musk had proposed merging OpenAI with Tesla or taking full control of the company. Musk’s lawsuit alleged that OpenAI had shifted away from its original mission of developing AI for the public good and had become focused on maximizing profits under Microsoft’s influence.
In their response, OpenAI clarified that discussions about transitioning to a for-profit structure had occurred, with Musk advocating for majority equity, initial board control, and the CEO position. However, during these negotiations, Musk withheld funding, leading to Reid Hoffman stepping in to cover operational costs.
OpenAI explained that they couldn’t agree to Musk’s terms because it contradicted their mission of ensuring no individual had absolute control over the organization. They also claimed that Musk had suggested attaching OpenAI to Tesla as a ‘cash cow’, indicating his belief that Tesla was the only entity capable of rivaling Google in the AI space.
The startup emphasized that while Musk left OpenAI to pursue his own AI venture, it remains committed to its mission of developing AI for the benefit of society.
Musk Files Lawsuit Against OpenAI Over Alleged Breach of Contract
Elon Musk has taken legal action against OpenAI by filing a lawsuit on Thursday at the San Francisco Superior Court, accusing the AI company of breaching its contract. In the lawsuit, Musk asserts that OpenAI has violated its fiduciary duty and engaged in unfair business practices. He contends that the company has strayed from its founding principles and should return to operating as an open-source platform.
According to Musk’s lawsuit, OpenAI has undergone a significant transformation, becoming a closed-source entity effectively controlled by Microsoft, the world’s largest technology company. He alleges that the company’s new board is focused on developing and refining artificial general intelligence (AGI) with the primary goal of maximizing profits for Microsoft, rather than prioritizing the advancement of AI for the betterment of humanity.
This legal action highlights Musk’s concerns about the direction in which OpenAI is heading and his belief that the company has deviated from its original mission. It underscores the broader debate surrounding the ethical implications of AI development and the balance between commercial interests and societal benefits.
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