Elon Musk is suing OpenAI: Accusing it of "stealing creativity" and demanding a return to its non-profit status.
On April 28, local time, the lawsuit against OpenAI entered the witness testimony phase, with both Musk and OpenAI CEO Sam Altman present in court. The case focuses on the legality of OpenAI's transition from a non-profit to a for-profit entity, drawing significant attention from the global tech community and public opinion.
Back in late 2015, Musk and Altman co-founded the non-profit, open-source OpenAI with the goal of "ensuring that general artificial intelligence benefits humanity." Musk served as co-chair and provided about $38 million in early donations, making him a key financial supporter.
However, by 2018, the costs of AI development skyrocketed, and Altman advocated for bringing in capital for commercialization, which clashed with Musk's philosophy against capital dominating technology.
In February of that year, Musk proposed that OpenAI merge with Tesla for access to data and funding, but Altman rejected the idea, escalating tensions further. Musk resigned from the board and exited operations.
In 2019, OpenAI restructured, creating a for-profit subsidiary with a "profit cap" and secured a $1 billion investment from Microsoft, leading to close collaboration. Following this, OpenAI accelerated commercialization, with ChatGPT's explosive popularity skyrocketing its valuation. In 2023, Microsoft added another $10 billion investment, increasing its stake to 49%.
By July 2023, Musk launched his own AI company, xAI, and the large model Grok, officially entering into competition with OpenAI.
In 2024, Musk took further action, formally suing Altman and co-founder Greg Brockman, while also naming Microsoft, OpenAI's largest investor, as a co-defendant.
During the trial, Musk stated that the lawsuit is to protect the charitable organization, arguing that Altman and others turned OpenAI from a non-profit into a "wealth machine" to benefit themselves and investors, which contradicts their founding intentions.
Musk claims that the idea and name of OpenAI originated from him, that key personnel were recruited by him, and that the initial funding was also provided by him, with the intention of being charitable; therefore, the company should not be profit-driven.
He demands that OpenAI revert to its non-profit status, remove Altman and other executives, and pay $150 billion in damages to its largest investor, Microsoft, although the compensation would be directed into a charitable account under OpenAI.
The defense argued that this move aims to suppress
#OpenAI to pave the way for Musk's xAI project. Regardless of the outcome, this legal battle will become a historic showdown in the development of AI.