Close Menu
Technology Mag

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot
    Millions of books died so Claude could live

    Millions of books died so Claude could live

    February 3, 2026
    Apple’s Xcode adds OpenAI and Anthropic’s coding agents

    Apple’s Xcode adds OpenAI and Anthropic’s coding agents

    February 3, 2026
    French police raid X’s Paris office as UK investigation continues

    French police raid X’s Paris office as UK investigation continues

    February 3, 2026
    Facebook X (Twitter) Instagram
    Subscribe
    Technology Mag
    Facebook X (Twitter) Instagram YouTube
    • Home
    • News
    • Business
    • Games
    • Gear
    • Reviews
    • Science
    • Security
    • Trending
    • Press Release
    Technology Mag
    Home » Elon Musk Sues OpenAI and Sam Altman for ‘Flagrant Breaches’ of Contract
    Business

    Elon Musk Sues OpenAI and Sam Altman for ‘Flagrant Breaches’ of Contract

    News RoomBy News RoomMarch 1, 20243 Mins Read
    Facebook Twitter Pinterest LinkedIn Reddit WhatsApp Email
    Elon Musk Sues OpenAI and Sam Altman for ‘Flagrant Breaches’ of Contract

    “Let’s remember that Elon Musk has multiple competing AI efforts, but notably [he founded] xAI, a competing AI company,” says David Shrier, professor of practice, AI and innovation at London’s Imperial College Business School. He adds that the lawsuit may be an attempt to slow down xAI’s competition.

    Regardless, Shrier believes Musk’s lawsuit reflects broader anxiety about the commercial success of OpenAI, which pledges in its founding charter to avoid enabling uses of AI or AGI that harm humanity or unduly concentrate power. “He’s got a point insofar as OpenAI’s original mission appears to be somewhat different from where the business is headed today,” Shrier says.

    OpenAI’s nonprofit arm was core to the company’s founding vision. “The nonprofit is in theory controlling the for-profit [side of the company],” says Nicolas Moës, executive director of the Future Society, a think tank. Altman has supported that setup in public. “The board can fire me, I think that’s important,” the CEO told Bloomberg in June.

    Yet when the board did fire him in November, Altman was reinstated as CEO after five days of drama that involved a threatened staff exodus and Microsoft announcing the hire of key OpenAI executives, including Altman, to lead its own AI team. “The board crisis of OpenAI in November showed that this nonprofit [side of the business] has basically no say, is in complete disarray, and the board itself is not really in control of what the for profit does,” says Moës.

    When Altman was reinstated at OpenAI, he announced a new non-voting board seat for Microsoft.

    “This dispute brings into focus a larger issue, which is the fact that many AI startups such as OpenAI find themselves in a position where they’re reliant on big tech finances and infrastructure, because of the sheer computing power that AI needs to develop,” says Laura Lazaro Cabrera, counsel and director of the equity and data program at the nonprofit Center for Democracy and Technology.

    The lawsuit casts Musk as a central figure in the AI’s recent evolution, as well as someone who is deeply concerned about the direction the industry is taking.

    When Musk was helping Altman recruit talent for OpenAI, he was preoccupied with the progress being made by AI company Google DeepMind, according to the lawsuit, which was causing him “extreme mental stress.” The filing claims that Musk “believed (and still does) that in the hands of a closed, for-profit company like Google, AGI poses a particularly acute and noxious danger to humanity.”

    Altman told Musk that OpenAI would be “the opposite of Google,” the lawsuit claims. Now Musk is alleging that his money was used instead to create a “for-profit partner of the world’s largest corporation.”

    Updated: 3/1/2024, 11:02 am EST: This story has been updated to include additional details from the lawsuit.

    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email
    Previous ArticleCopilot for OneDrive will fetch your files and summarize them
    Next Article Roblox says it hasn’t blocked Linux or Steam Deck, but it’s reportedly toast there

    Related Posts

    What Happens When Your Coworkers Are AI Agents

    What Happens When Your Coworkers Are AI Agents

    December 9, 2025
    San Francisco Mayor Daniel Lurie: ‘We Are a City on the Rise’

    San Francisco Mayor Daniel Lurie: ‘We Are a City on the Rise’

    December 9, 2025
    An AI Dark Horse Is Rewriting the Rules of Game Design

    An AI Dark Horse Is Rewriting the Rules of Game Design

    December 9, 2025
    Watch the Highlights From WIRED’s Big Interview Event Right Here

    Watch the Highlights From WIRED’s Big Interview Event Right Here

    December 9, 2025
    Amazon Has New Frontier AI Models—and a Way for Customers to Build Their Own

    Amazon Has New Frontier AI Models—and a Way for Customers to Build Their Own

    December 4, 2025
    AWS CEO Matt Garman Wants to Reassert Amazon’s Cloud Dominance in the AI Era

    AWS CEO Matt Garman Wants to Reassert Amazon’s Cloud Dominance in the AI Era

    December 4, 2025
    Our Picks
    Apple’s Xcode adds OpenAI and Anthropic’s coding agents

    Apple’s Xcode adds OpenAI and Anthropic’s coding agents

    February 3, 2026
    French police raid X’s Paris office as UK investigation continues

    French police raid X’s Paris office as UK investigation continues

    February 3, 2026
    Apple’s tiny but mighty iPad Mini is 0 off in every storage configuration

    Apple’s tiny but mighty iPad Mini is $100 off in every storage configuration

    February 3, 2026
    I didn’t expect to love Dyson’s PencilVac Fluffycones – but I did

    I didn’t expect to love Dyson’s PencilVac Fluffycones – but I did

    February 3, 2026
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Don't Miss
    Fitbit’s founders launch a new platform for monitoring your entire family’s health News

    Fitbit’s founders launch a new platform for monitoring your entire family’s health

    By News RoomFebruary 3, 2026

    Luffu users can ask the system questions and get personalized answers for individual family members,…

    Aluminium: Why Google’s Android for PC launch may be messy and controversial

    Aluminium: Why Google’s Android for PC launch may be messy and controversial

    February 3, 2026
    YouTube now blocking background playback on mobile browsers

    YouTube now blocking background playback on mobile browsers

    February 3, 2026
    A community organizer’s guide to Signal group chats

    A community organizer’s guide to Signal group chats

    February 3, 2026
    Facebook X (Twitter) Instagram Pinterest
    • Privacy Policy
    • Terms of use
    • Advertise
    • Contact
    © 2026 Technology Mag. All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.