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Lawsuit alleges OpenAI has effectively become a ‘closed-source subsidiary’ of Microsoft
OpenAI co-founder Elon Musk has filed a lawsuit against OpenAI, his fellow co-founders, associated businesses, and unidentified others, alleging that they have violated the company’s non-profit status and contractual agreements. Musk claims that their pursuit of profits is contrary to OpenAI’s mission of developing AI for the benefit of humanity. The lawsuit contends that OpenAI has become a “closed-source de facto subsidiary” of Microsoft, which has invested $13 billion and holds a 49 percent stake in the company. Microsoft utilizes OpenAI technology, including the generative AI tool called Copilot.
According to Musk’s filing, the current board of OpenAI is allegedly prioritizing the development of artificial general intelligence (AGI) to maximize profits for Microsoft, rather than for the benefit of humanity. Musk argues that GPT-4, which is claimed to be better at reasoning than average humans, is equivalent to AGI and is a proprietary algorithm of Microsoft.
Musk’s involvement with OpenAI began when he was persuaded by OpenAI CEO Sam Altman and co-founder Greg Brockman to help start the non-profit and fund its early operations. Musk claims to have donated $44 million to the organization between 2016 and 2020. However, he stepped down as an OpenAI board member in 2018 after rejecting an offer for a stake in OpenAI’s for-profit subsidiary.
Competition regulators in the US, the UK, and the European Union are reportedly investigating OpenAI’s partnership with Microsoft. Additionally, OpenAI and Microsoft have been sued by multiple news organizations, alleging copyright infringement related to the use of ChatGPT.
OpenAI has responded to Musk’s lawsuit, stating that it categorically disagrees with the claims made. OpenAI’s Chief Strategy Officer, Jason Kwon, denies the allegation that OpenAI has become a subsidiary of Microsoft and suggests that Musk’s claims may stem from his regret about not being involved with the company.
The lawsuit seeks a jury trial and a ruling that enforces OpenAI’s original non-profit mission. Musk also aims to prevent OpenAI from monetizing technology developed as a non-profit for the benefit of its leadership, Microsoft, and other partners.