Elon Musk Sues Sam Altman and ChatGPT-Developer OpenAI Over Breach of Agreement

SpaceX and Tesla, and the owner of X, Elon Musk, sued OpenAI and its CEO, Sam Altman, alleging a breach of their non-profit agreement. The lawsuit accuses Sam Altman and OpenAI of betraying an agreement from the artificial intelligence (AI) research company's founding to develop the technology for the benefit of humanity over profits, reported Courthouse News Service.

Meanwhile, the lawsuit claims that OpenAI’s shift towards commercial interests, particularly with tech giant Microsoft, contradicts its original mission of developing AI for the benefit of humanity.  In addition, he accuses OpenAI of transforming into a closed-source entity driven by profit rather than advancing technology for humanity’s benefit. 

BREAKING: Elon Musk has reportedly sued OpenAI. Lawsuit accuses Sam Altman and OpenAI have betrayed an agreement from the artificial intelligence research company's founding to develop the technology toward the benefit of humanity over profits. pic.twitter.com/ovvFCsOGR7

— Insider Paper (@TheInsiderPaper) March 1, 2024

Meanwhile, Musk’s lawsuit, filed in San Francisco Superior Court, outlines several grievances, including breach of contract, breach of fiduciary duty, and unfair business practices. Besides, he demands that OpenAI revert to its open-source ethos and seeks an injunction to prevent the exploitation of AGI technology for profit.

However, amid this ongoing legal heat, OpenAI is preparing to appoint new board members. This move comes as the company navigates through regulatory investigations and internal leadership turmoil.

Altman’s reinstatement as CEO in November followed a period of upheaval, with several board members resigning. Notably, regulatory scrutiny has intensified, with the SEC reportedly investigating internal communications to determine if investors were misled during the leadership upheaval.