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Elon Musk Files Breach of Contract Suit Against OpenAI and Sam Altman

Fri Mar 01 2024
Rachel Long (682 articles)
Elon Musk Files Breach of Contract Suit Against OpenAI and Sam Altman

Elon Musk has filed a lawsuit against OpenAI and its CEO Sam Altman, claiming that the two violated the company’s founding agreement by putting profit before the well-being of humanity.

Musk, a co-founder of ChatGPT in 2015, has stated that OpenAI’s association with Microsoft contradicts the company’s initial dedication to public, open-source AI.

On Thursday, Musk stated in court documents filed in San Francisco that he and co-founders Altman and Greg Brockman had committed to seek a nonprofit organization “for the benefit of humanity” when they founded the company.

Suit claims that Microsoft has turned OpenAI, Inc. into a closed-source de facto subsidiary. Microsoft is the biggest technological firm in the world. “With the new board at the helm, the company is focusing more on making money for Microsoft than on creating AI that will help people.”

Musk has sued OpenAI and its co-founders, claiming unfair commercial tactics, breach of contract, and violation of fiduciary duty.

Both OpenAI and Musk were slow to react when asked for comment.

Rachel Long

Rachel Long

Rachel Long is our Desk Correspondent covering Stock Markets across the globe. She is based in New York

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