Close Menu
Technology Mag

    Subscribe to Updates

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

    What's Hot

    If you can get past the terrible logo, Audacity 4 looks pretty great

    October 5, 2025

    Roland is finally honoring its legacy instead of just cashing in on it

    October 5, 2025

    I’ve tested the latest Switch 2 controllers and this one is the best

    October 5, 2025
    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

    “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

    China Rolls Out Its First Talent Visa as the US Retreats on H-1Bs

    October 3, 2025

    OpenAI’s New Sora App Lets You Deepfake Yourself for Entertainment

    October 3, 2025

    This AI-Powered Robot Keeps Going Even if You Attack It With a Chainsaw

    October 3, 2025

    Chatbots Play With Your Emotions to Avoid Saying Goodbye

    October 3, 2025

    Exclusive: Mira Murati’s Stealth AI Lab Launches Its First Product

    October 2, 2025

    Why One VC Thinks Quantum Is a Bigger Unlock Than AGI

    October 1, 2025
    Our Picks

    Roland is finally honoring its legacy instead of just cashing in on it

    October 5, 2025

    I’ve tested the latest Switch 2 controllers and this one is the best

    October 5, 2025

    Version History is live — here’s how to find it

    October 5, 2025

    The best lists to keep — and the best ways to keep them

    October 5, 2025
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Don't Miss
    Science

    Jeff Bezos’ Blue Origin Wins Contract to Take NASA Rover to the Moon

    By News RoomOctober 5, 2025

    NASA’s VIPER lunar rover could be delivered to the moon by Blue Origin, Jeff Bezos’…

    This week’s best deal is a ‘kids’ Kindle Paperwhite that’s better than the adult version

    October 4, 2025

    Breaking up (Google) is hard to do

    October 4, 2025

    Ecovacs’ Deebot X8 and X9 Pro Omni robovacs have hit a new low price

    October 4, 2025
    Facebook X (Twitter) Instagram Pinterest
    • Privacy Policy
    • Terms of use
    • Advertise
    • Contact
    © 2025 Technology Mag. All Rights Reserved.

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