Elon Musk Sues OpenAI for Abandoning Original Mission for Profit

Elon Musk, CEO of SpaceX and Tesla and owner of X, formerly known as Twitter, attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center in Paris, France, June 16, 2023. (Reuters)
Elon Musk, CEO of SpaceX and Tesla and owner of X, formerly known as Twitter, attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center in Paris, France, June 16, 2023. (Reuters)
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Elon Musk Sues OpenAI for Abandoning Original Mission for Profit

Elon Musk, CEO of SpaceX and Tesla and owner of X, formerly known as Twitter, attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center in Paris, France, June 16, 2023. (Reuters)
Elon Musk, CEO of SpaceX and Tesla and owner of X, formerly known as Twitter, attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center in Paris, France, June 16, 2023. (Reuters)

Elon Musk has sued ChatGPT-maker OpenAI and its CEO Sam Altman, saying they abandoned the startup's original mission to develop artificial intelligence for the benefit of humanity and not for profit.

The lawsuit filed late on Thursday in San Francisco is a culmination to the billionaire's long-simmering opposition to the startup he co-founded and has since become the face of generative AI, partly due to the billions of dollars in funding from Microsoft.

Musk alleged a breach of contract, saying Altman and co-founder Greg Brockman originally approached him to make an open source, non-profit company, but the startup established in 2015 is now focused on making money.

Recounting OpenAI's founding, Musk said the three men had agreed to work on artificial general intelligence (AGI), a concept that machines could handle tasks like a human, but in a way that would "benefit humanity", according to the lawsuit.

OpenAI would also work in opposition to Google, which Musk believed was developing AGI for profit and would pose grave risks.

Instead, OpenAI "set the founding agreement aflame" in 2023 when it released its most powerful language model GPT-4 as essentially a Microsoft product, the lawsuit alleged.

Musk has sought a court ruling that would compel OpenAI to make its research and technology available to the public and prevent the startup from using its assets, including GPT-4, for the financial gains of Microsoft or any individual.

OpenAI, Microsoft and Musk did not respond to Reuters requests for comment.

The billionaire is also seeking a ruling that GPT-4 and a new and more advanced technology called Q* would be considered AGI and therefore outside of Microsoft's license to OpenAI.

Reuters in November was first to report on Q* and warnings from OpenAI researchers about a powerful AI discovery.

Musk, who runs Tesla and rocket maker SpaceX and bought Twitter for $44 billion in October 2022, stepped down from OpenAI's board in 2018 and has on several occasions called for regulation on AI.

OpenAI's tie-up with Microsoft is under antitrust scrutiny in the United States and Britain following the startup's boardroom battle last year that resulted in the sudden ouster and return of Altman and the creation of a new temporary board.

The startup is planning to appoint new board members in March, the Washington Post reported on Thursday. Microsoft said in November it would have a non-voting, observer seat on the board.

Some legal experts said Musk's allegations of breach of contract, which is partly based on an email between Musk and Altman, could fail to hold up in court.

While contracts can be formed through a series of emails, the lawsuit cites an email that appears to look like a proposal and a "one-sided discussion", said Brian Quinn, a law professor at Boston College Law School.

"To the extent Musk is claiming that the single e-mail in Exhibit 2 is the 'contract', he will fall well short," Quinn said.

Musk's xAI

Musk has mounted a rival AI effort with his startup xAI, which is made up of engineers hired from some of the top US technology firms such as Google and Microsoft that he hopes to challenge.

The startup started rolling out its ChatGPT competitor Grok for Premium+ subscribers of social media platform X in December and aims to create what Musk has said would be a "maximum truth-seeking AI".

The billionaire, who has called AI a "double-edged sword", was among a group of AI experts and industry executives that last year called for a six-month pause in developing systems more powerful than OpenAI's GPT-4, citing great risks to humanity and society.

Since its debut, ChatGPT has been adopted by companies for a wide range of tasks from summarizing documents to writing computer code, setting off a race among Big Tech companies to launch their own offerings based on generative AI.



Google Preparing to Partner with Taiwan's MediaTek on Next AI chip, Information Reports

A signage for Google is displayed near their office in Beijing, China, 04 February 2025. (EPA)
A signage for Google is displayed near their office in Beijing, China, 04 February 2025. (EPA)
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Google Preparing to Partner with Taiwan's MediaTek on Next AI chip, Information Reports

A signage for Google is displayed near their office in Beijing, China, 04 February 2025. (EPA)
A signage for Google is displayed near their office in Beijing, China, 04 February 2025. (EPA)

Alphabet's Google is preparing to partner with Taiwan's MediaTek on the next version of its AI chips, Tensor Processing Units, that will be made next year, the Information reported on Monday, citing people involved in the project.

However, Google has not cut ties with Broadcom, the chip designer it has worked with exclusively on the AI chips over the past several years, the report said, citing an employee at the San Jose-based company.

Like Nvidia,. Google also designs its own AI server chips, which it uses for internal research and development and also rents out to cloud customers, Reuters reported.

This approach gives Google a competitive edge in the AI race by reducing its reliance on Nvidia, even as rivals like Microsoft-backed OpenAI and Meta Platforms have seen a surge in demand for Nvidia chips.

Late last year, Google rolled out its sixth-generation TPU in a bid to give itself and its Cloud customers an alternative to Nvidia's chips, which are the most sought-after processors in the industry.

Google chose MediaTek partly because the Taiwanese firm has a strong relationship with TSMC and charges Google less per chip compared to Broadcom, the Information report added.

Google spent between $6 billion and $9 billion on TPUs last year, according to research firm Omdia, based on Broadcom's target for AI semiconductor revenue last year.