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.



OpenAI Enters Google-Dominated Search Market with SearchGPT 

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
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OpenAI Enters Google-Dominated Search Market with SearchGPT 

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)

OpenAI is venturing into a territory long dominated by Google with the selective launch of SearchGPT, an artificial intelligence-powered search engine with real-time access to information from the internet.

The move, announced on Thursday, also places the AI giant in competition with its largest backer Microsoft's Bing search and emerging services such as Perplexity — a search-focused AI chatbot firm backed by Amazon founder Jeff Bezos and semiconductor giant Nvidia.

Shares of Google's parent company Alphabet ended 3% lower on Thursday after OpenAI's announcement.

OpenAI said it has opened sign-ups for the new tool, which is currently in the prototype stage and is being tested with a small group of users and publishers. The company plans to integrate the best features from the search tool into ChatGPT in the future.

"AI-powered search tools from OpenAI and Perplexity re-affirm search as a content engagement model but pressure Google to be better at its own game," Canaccord Genuity analyst Kingsley Crane said.

Google dominates the search engine market with a 91.1% share as of June, according to web analytics firm Statcounter.

SearchGPT will provide summarized search results with source links in response to user queries, OpenAI said in a blog post. Users will also be able to ask follow-up questions and receive contextual responses.

The company will give publishers access to tools for managing how their content appears in SearchGPT results. News Corp and The Atlantic are publishing partners for SearchGPT.

SearchGPT signals a closer collaboration between publishers and OpenAI, following content licensing agreements with major organizations like Associated Press, News Corp and Axel Springer.

"Newer AI-powered search providers could face challenges of their own, with Perplexity already facing pending legal action from publishers like Wired and Forbes, and Condé Nast," said Crane.

Major search engines have been trying to integrate AI into search since ChatGPT first launched in November 2022. Microsoft, through its early investment, adopted OpenAI technology for its Bing search engine, while Google rolled out AI-powered summaries for the wider public at its developer conference in May.

Google did not respond to a Reuters query on the potential impact of SearchGPT on its business.

Reuters had earlier reported on OpenAI's plans around AI search in May.