Billionaire Elon Musk Enters Courtroom Showdown with OpenAI

Elon Musk arrives at the 10th Breakthrough Prize Ceremony on April 13, 2024, at the Academy Museum of Motion Pictures in Los Angeles. (AP)
Elon Musk arrives at the 10th Breakthrough Prize Ceremony on April 13, 2024, at the Academy Museum of Motion Pictures in Los Angeles. (AP)
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Billionaire Elon Musk Enters Courtroom Showdown with OpenAI

Elon Musk arrives at the 10th Breakthrough Prize Ceremony on April 13, 2024, at the Academy Museum of Motion Pictures in Los Angeles. (AP)
Elon Musk arrives at the 10th Breakthrough Prize Ceremony on April 13, 2024, at the Academy Museum of Motion Pictures in Los Angeles. (AP)

Jury selection is to begin Monday in a high-profile legal battle between billionaire Elon Musk and artificial intelligence startup OpenAI, which he accuses of betraying its non-profit mission.

The clash in a courtroom across the bay from San Francisco pits the world's richest man against a startup that Musk once backed and now competes against in the booming AI sector.

OpenAI's ChatGPT is a formidable rival to the Grok chatbot made by Musk's xAI lab.

While the lawsuit filed by Musk is part of a feud between him and OpenAI chief executive Sam Altman, it spotlights a debate whether AI should ultimately benefit the privileged few or society as a whole.

Court filings lay out how Altman tried to convince Musk to back OpenAI in 2015, acting as a co-founder for a non-profit lab whose technology "would belong to the world."

Musk pumped some $38 million into the lab before he left.

OpenAI is now valued at $852 billion, with Microsoft among its backers, and is preparing to go public on the stock market.

The judge presiding over the trial is aiming for a jury to decide by late May whether OpenAI broke a promise to Musk in its drive to be a leader in AI or just smartly rode the technology to glory.

- Musk duped? -

Musk argues in his lawsuit that he was deceived about OpenAI's mission being altruistic.

The tycoon cites an email from Altman in 2017 claiming that he remained "enthusiastic about the non-profit structure" of their AI venture after Musk threatened to cut off funding for the lab.

Just a few months later, however, OpenAI established a commercial subsidiary in the face of needing to invest hundreds of billions of dollars in data centers to power its technology.

Over the course of the following two years, Microsoft pumped billions of dollars into OpenAI and the tech stalwart's stake in the startup is now valued about $135 billion.

Microsoft chief executive Satya Nadella is among those slated to testify at the trial.

- Aimed at Altman -

Along with calling for OpenAI to be forced to revert to a pure nonprofit, Musk's suit urges the ousting of Altman and OpenAI co-founder and president Greg Brockman.

Musk is also seeking as much as $134 billion in damages and to have the court make OpenAI sever ties with Microsoft.

During pre-trial hearings, US Judge Yvonne Gonzalez Rogers mused that Musk team seemed to be "pulling numbers out of the air" when it came to calculating damages.

If the jury sides with Musk, it will be left to Rogers to determine any remedies or payment.

In what OpenAI has dismissed as a public relations stunt, Musk has vowed that any damages awarded in the suit will go to the startup's nonprofit foundation.

- Quest for control? -

OpenAI internal communications brought to light by the lawsuit reveal tensions that culminated with the temporary ouster of Altman as AI chief executive in late 2023.

Musk's legal team highlighted a 2017 entry in Brockman's personal journal reasoning that it would be lying if Altman publicly asserted OpenAI would stay a nonprofit but became a corporation a short time later.

OpenAI now has a hybrid governance structure giving its nonprofit foundation control over a for-profit arm.

In court filings, OpenAI countered that its break-up with Musk was due to his quest for absolute control rather than its nonprofit status.

"This case has always been about Elon generating more power and more money for what he wants," OpenAI said in a post on X, a platform Musk owns.

"His lawsuit remains nothing more than a harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor."

The startup noted that days after Musk entered the AI race in 2023 he called for a 6-month moratorium on development of advanced AI.



Abu Dhabi AI Institute Releases Fully Open-Source Models With Training Data, Code

A view of the UAE capital, Abu Dhabi (Asharq Al-Awsat)
A view of the UAE capital, Abu Dhabi (Asharq Al-Awsat)
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Abu Dhabi AI Institute Releases Fully Open-Source Models With Training Data, Code

A view of the UAE capital, Abu Dhabi (Asharq Al-Awsat)
A view of the UAE capital, Abu Dhabi (Asharq Al-Awsat)

Abu Dhabi-based research institute IFM on Thursday released six artificial intelligence models together with the data and methods used to build them, challenging an industry trend toward increasingly secretive AI development.

The K2 Horizon release includes model weights, training data, code, methodologies and intermediate checkpoints, allowing researchers to retrace the models' development process and reproduce results, IFM founder Eric Xing told Reuters.

The move goes beyond the "open-weight" approach used by some Chinese developers, which make models available for download but provide limited insight into how they were built, and contrasts with the more closed development practices of companies such as OpenAI and Anthropic, which neither release their models for download nor disclose the data and techniques behind them.

"Our goal with this release is to establish a reference point for what a truly open model release can look like," Xing said.

He said the release was also intended to show policymakers, regulators and public-interest advocates that "openness and competitive performance are not mutually exclusive."

The launch forms part of the UAE's push to establish itself as a global AI hub.

The model family ranges from one designed for smartwatches and other constrained devices to a 375-billion-parameter system for enterprise deployments.


Nvidia to Buy Hugging Face for $13 billion in Big Bet on Open AI Models

Nvidia's logo at its headquarters in Santa Clara, California (AFP)
Nvidia's logo at its headquarters in Santa Clara, California (AFP)
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Nvidia to Buy Hugging Face for $13 billion in Big Bet on Open AI Models

Nvidia's logo at its headquarters in Santa Clara, California (AFP)
Nvidia's logo at its headquarters in Santa Clara, California (AFP)

Nvidia will buy popular developer platform Hugging Face for $12.93 billion, betting that support for open AI models will drive future demand even as its biggest customers develop their own chips to reduce reliance on the semiconductor giant.

Shares of the company were slightly higher after the deal on Thursday, which ranks among its biggest.

The deal will cement Nvidia as a central player in the market for open models that users can freely download, run and customize, unlike the closed systems built by OpenAI and Anthropic.

Nvidia has already played an active role in backing the open AI industry with its widely used Nemotron model. Acquiring Hugging Face will give it direct access to a platform developers use to collaborate, test and share tools, potentially providing valuable insight and data that could help it narrow the technology gap with top American and Chinese labs.

Demand for open-weight models has surged from businesses balking at the steep bill of deploying the technology, with Chinese companies such as DeepSeek and Z.ai emerging as crucial players with models that can match the best from the US in tasks, including generating computer code at a lower cost.

That surge has fueled fears that some American firms could become reliant on Beijing's models even as both countries race to dominate a technology they see as crucial to their future.

"Hugging Face will remain an open platform for the entire AI ecosystem," Nvidia CEO Jensen Huang said, adding that his company's chips would not be required to build on or deploy through Hugging Face.

Under the deal, Nvidia will pay about $11.9 billion to Hugging Face investors, while offering an equity-based retention program of up to $1 billion for employees who join Nvidia.

The two companies already work together to help developers use Nvidia's computing services on the platform.

For Nvidia, building up open source may help it cushion a demand slowdown from customers such as Meta, OpenAI and Microsoft, which are developing their own AI chips to cut reliance on its costly and supply-constrained processors.

Hugging Face has also been in the news recently after a hack by rogue AI agents that escaped OpenAI's testing environment. Beyond hosting AI models, it offers datasets, software libraries and cloud services used to build and deploy AI applications.

The New York-based startup, which is backed by Intel , Advanced Micro Devices and Amazon, was founded in 2016 by French entrepreneurs Clément Delangue, Julien Chaumond and Thomas Wolf.


Robot Brings Cashier and Service-Host Functions to LEAP 2026

LEAP 2026 is showcasing an emerging Saudi experience in artificial intelligence (AI) and robotics through a robot named RoboNex, designed to combine cashier and service-host functions in the restaurant and café sector. (SPA)
LEAP 2026 is showcasing an emerging Saudi experience in artificial intelligence (AI) and robotics through a robot named RoboNex, designed to combine cashier and service-host functions in the restaurant and café sector. (SPA)
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Robot Brings Cashier and Service-Host Functions to LEAP 2026

LEAP 2026 is showcasing an emerging Saudi experience in artificial intelligence (AI) and robotics through a robot named RoboNex, designed to combine cashier and service-host functions in the restaurant and café sector. (SPA)
LEAP 2026 is showcasing an emerging Saudi experience in artificial intelligence (AI) and robotics through a robot named RoboNex, designed to combine cashier and service-host functions in the restaurant and café sector. (SPA)

LEAP 2026 is showcasing an emerging Saudi experience in artificial intelligence (AI) and robotics through a robot named RoboNex, designed to combine cashier and service-host functions in the restaurant and café sector. The robot interacts with customers in real time, takes their orders and provides smart recommendations, the Saudi Press Agency said on Thursday.

The robot’s development took place in Saudi Arabia, starting with structural design and component engineering and progressing to controller programming, AI algorithms, voice-processing systems and real-time interaction. It was also integrated with point-of-sale systems and electronic payment gateways.

The robot can handle sales transactions and take customer orders, while recommending additional products based on items already in the shopping basket. It can display specified discounts and promotional offers during the purchasing journey.

The presence of robots at LEAP 2026 highlights the growing adoption of AI and robotics across industries, as these technologies move beyond experimental concepts toward real-world applications in business, services and retail.