OpenAI fires back at Elon Musk’s lawsuit, saying it raised a profitable business
OpenAI CEO Sam Altman sits down with Shannon Bream to discuss the potential pros and cons of artificial intelligence and the importance of maintaining a lead in the AI industry over China.
OpenAI is backing down from Elon Musk’s latest attempt to reframe its lawsuit against the artificial intelligence (AI) giant seeking to prevent the company from turning a profit, notes a blog post and a legal filing that Musk contested. doing so years ago.
Musk, who founded OpenAI in 2015 along with the company’s CEO Sam Altman, Ilya Sutskever, Greg Brockman and others, parted ways with the company in early 2018 after failing to control the company as a majority shareholder and CEO and later tried to convince. its founders to combine it with Tesla. Musk founded xAI, a competitor to OpenAI, in March 2023.
In March 2024, Musk filed a lawsuit against OpenAI alleging that it violated its founding principle as a non-profit company by creating a for-profit structure. OpenAI pushed back against that lawsuit, which was withdrawn and refiled over the summer, and explained Musk’s past deal with the for-profit structure in a new blog post and legal filing.
OpenAI noted that in email conversations with other co-founders, Elon Musk questioned whether there should be a non-profit structure before the company was announced in November 2015 and wrote in an email that “the structure does not seem right … standard C corp and non-profit organization -same benefit.”
ELON MUSK WANTS OPENAI, SAM ALTMAN TOO
Elon Musk, the founder of OpenAI who later resigned from the start of AI, wanted to control OpenAI’s profit-making business before he denied it, OpenAI argues. (Frederic J. Brown/AFP via Getty Images/Getty Images)
In July 2017, Musk and the founders of OpenAI were discussing the company’s next steps and a message from Brockman to Zilis, who was acting as a liaison between Musk and OpenAI, described notes from a meeting with Musk where they discussed OpenAI’s possible structural change. to make a profit.
Brockman said in a text message that the meeting with Musk “turned around to talk about the structure (he said that the non-profit organization was defying what was right early on, it may not be right now – it is crying and I agree with this for several reasons).”
The progress made in developing OpenAI technology in August 2017 prompted Musk to suggest that “it’s time to take the next step for OpenAI. This is the kick-off event.” It was a reference to an email from Brockman suggesting that the for-profit OpenAI will launch in 2018.
ELON MUSK DROPPED LAWSUIT AGAINST OPENAI
OpenAI CEO and co-founder Sam Altman was among the AI leaders who disagreed with Musk taking control of the company. (Reuters/Lucy Nicholson/File Photo/Reuters)
FOX Business learned from OpenAI’s legal team that Musk then instructed his wealth manager in September 2017 to form a public benefit organization called Open Artificial Intelligence Technologies Inc., which prompted discussions about the terms of ownership.
Musk insisted on having more equity and control of the board and serving as CEO. When other co-founders rejected those terms, Musk said the negotiations were over.
In January 2018, Musk said, “OpenAI is on the path to some Google-related failure,” and suggested that the company be acquired by Tesla. However, the OpenAI team chose not to do so, and the two sides could not agree on a way forward.
OPENAI PUTS BACK ON ELON MUSK’S LAW, SAYS HE PROPOSED TO MEET TESLA
OpenAI founder Greg Brockman also disagreed with Musk’s requests to control OpenAI’s profits. (Getty Images/Getty)
Musk resigned from the company’s board in February 2018 after holding a farewell meeting, saying he would pursue AI development at Tesla. He also told OpenAI that it needed to raise “a billion a year as soon as possible” by December 2018 or it had no chance of qualifying in the AI race with Google’s DeepMind unit.
OpenAI went public with its limited for-profit business, governed by a non-profit organization, in March 2019. The company shared a copy of the announcement with Musk, who responded, “I would like to clarify that I have no financial interest in the for-profit arm of OpenAI.”
The company’s founders have also offered Musk equity in the for-profit company several times over the years, which Musk has turned down.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
OpenAI emerged as a leader in the development of productive AI with its launch of ChatGPT in November 2022. Since then it has received significant investment from Microsoft and other organizations.
XAI has raised billions of dollars since its launch in early 2023 and has introduced AI models that aim to compete with ChatGPT.
Musk withdrew his original lawsuit against OpenAI from March 2024 in June but filed a new complaint in August.
Source link
