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Elon Musk sues OpenAI and CEO Sam Altman for breaching contract

Elon Musk has filed a lawsuit against OpenAI, supported by Microsoft, and its CEO, Sam Altman, among others. Musk alleges that they have departed from the company’s original goal of creating artificial intelligence “for the wider benefit of humanity.”

1709287416 elon musk sues openai chief executive sam altman for breach of contract 1
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In a lawsuit filed on Thursday in a San Francisco court, Musk’s legal team asserted that in 2015, Altman and OpenAI co-founder Greg Brockman approached the tech billionaire. Musk agreed to establish a nonprofit laboratory dedicated to developing artificial general intelligence (AGI) for the betterment of humanity.

Initially a co-founder of OpenAI in 2015, Musk resigned from the firm’s board in 2018, following his earlier statement that AI poses potential risks greater than nuclear weapons.

The lawsuit alleges that despite OpenAI, Inc.’s public commitment to ensuring AGI benefits all humanity, it has effectively become a closed-source affiliate of Microsoft, the world’s largest technology company.

According to Musk’s legal representatives, OpenAI’s shift towards profit maximization for Microsoft violates the initial agreement. The lawsuit asserts that OpenAI, under its new board, is not only developing but also refining AGI to enhance Microsoft’s profits rather than serving humanity’s interests.

As of now, OpenAI and Microsoft have not issued immediate comments on the matter.

Musk’s legal representatives stated that the lawsuit was filed “to enforce adherence to the Founding Agreement by OpenAI and to redirect its focus towards developing AGI for the betterment of humanity, rather than serving the personal interests of the individual Defendants and the world’s largest technology company.”

Under scrutiny by EU antitrust regulators due to its reported $13 billion investment in OpenAI, Microsoft recently announced a fresh partnership with French startup Mistral AI.

On Monday, the American tech giant revealed its investment in Mistral AI, often considered Europe’s counterpart to OpenAI, aimed at facilitating the discovery of “new commercial opportunities” and fostering expansion into global markets.

The legal dispute involves two of the most influential figures in the tech industry, amid an era of heightened anticipation surrounding AI’s future.

Ever since its introduction in November 2022, OpenAI’s chatbot, ChatGPT, has captured global attention. Rapidly becoming the fastest-growing consumer application to date, it has spurred the development of competing chatbots by tech giants like Google’s parent company Alphabet and Microsoft.

Elon Musk, renowned as the world’s wealthiest individual, oversees Tesla, a prominent electric vehicle manufacturer, as well as SpaceX, a company focused on rockets and satellites. In October 2022, he acquired X for $44 billion. Recently, Musk has been highlighting the progress of brain chip technology implants developed by his startup, Neuralink.

In addition to his other ventures, Musk unveiled his own AI company, xAI, in July of last year.

Meanwhile, Sam Altman has experienced a tumultuous relationship with OpenAI. He was abruptly terminated from the company in November of the previous year, causing significant ripples throughout the tech industry. Altman, a prominent figure in the AI sphere, returned to the firm a few days later.

Read More: Neuralink, led by Elon Musk, implants a brain chip in its first human participant.

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