Elon Musk Sues OpenAI’s Brazen Transformation from Non-Profit to $80B+ Market Cap For-Profit
From Drive Tesla Canada.:
Elon Musk sues OpenAI, challenging its shift from non-profit to for-profit status following Microsoft’s acquisition, with a valuation of over $80 billion. Musk claims breach of contract, unfair business practices, and failure to fulfill fiduciary duties. He invested in OpenAI to counterbalance Google’s influence in AI development.
OpenAI, originally focused on open-source, non-commercial AI, expanded into a for-profit model. Musk, who left due to disagreements on AI safety, took issue with the company’s transformation. Microsoft invested $13 billion in OpenAI’s commercial division, leading to the company’s valuation exceeding $80 billion, moving away from its original mission.
Musk filed a lawsuit in California Superior Court, alleging OpenAI’s shift to for-profit and closed-source practices violated their founding mission. OpenAI’s board firing and rehiring its CEO stirred controversy. Musk’s legal challenge seeks to hold OpenAI accountable for failing to prioritize the development of AI for the benefit of humanity.
Court documents reveal OpenAI licensed its GPT-3 language model exclusively to Microsoft but retained rights to AGI. GPT-4, launched in 2023, boasted superior reasoning abilities to humans, but its internal design remained undisclosed to the public. OpenAI’s move towards commercial success has sparked accusations of departing from its original principles.
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