Lawsuit alleges CEO Sam Altman’s Microsoft deal contradicts organization’s mission
Elon Musk’s lawsuit accuses OpenAI and CEO Sam Altman of prioritizing profit over humanity, alleging that Altman’s deal with Microsoft violates the organization’s founding mission. Musk, a founding board member of the AI company behind ChatGPT and the world’s richest man, claims Altman has deviated from OpenAI’s original goals by pursuing a profit-driven approach. The lawsuit, filed in San Francisco, contends that OpenAI is now focused on developing artificial general intelligence (AGI) for financial gain rather than for the betterment of humanity.
The lawsuit alleges that OpenAI Inc. has become a closed-source, quasi-subsidiary of Microsoft, the world’s largest technology company. It claims that under its new leadership, OpenAI is not only developing but actively perfecting an AGI to maximize profits for Microsoft, rather than prioritizing the welfare of humanity.
The lawsuit begins with Musk’s frequent caution about the dangers of AGI to humanity.
“While individuals like Mr. Musk view AGI as an existential risk, others perceive it as a lucrative asset,” the lawsuit stated. It further warned that in the control of for-profit entities like Google, AGI represents a “particularly severe and harmful threat to humanity.”
Musk and other technology experts fear that an AGI could elude human oversight and carry out actions that put the planet at risk.
The lawsuit alleges that Altman claimed to share Musk’s apprehensions about AGI and in 2015 suggested establishing a non-profit AI laboratory that would serve as a counterpoint to Google, ultimately becoming OpenAI. Musk, along with Greg Brockman, OpenAI’s president and another defendant in the lawsuit, agreed to establish a lab with principles outlined in a founding agreement.
This laboratory was envisioned as being “for the benefit of humanity,” operating as a non-profit entity and embracing open-source practices, which involve making the technology freely accessible.
The lawsuit alleges that Musk, who distanced himself from OpenAI in 2018, played a significant role in founding the organization and provided the majority of its funding in its initial stages. Following a deal in 2020, Microsoft has become the largest investor in OpenAI’s profit-oriented division, overseen by Altman.
The lawsuit alleges that in 2023, OpenAI, Altman, and Brockman effectively disregarded the founding agreement by launching GPT-4, the advanced model behind OpenAI’s ChatGPT chatbot. The design of GPT-4 was kept confidential, marking a significant departure from OpenAI’s initial mission, according to the lawsuit.
“The decision to keep this technology secret is mainly motivated by commercial interests, rather than safety,” the lawsuit asserts. It is seeking damages for breach of contract, breach of fiduciary duty, and unfair business practices.
The lawsuit further alleges that GPT-4 is an AGI technology effectively owned by Microsoft, a situation that purportedly falls beyond the scope of the licensing agreement between Microsoft and OpenAI. Additionally, the lawsuit claims that OpenAI is developing a model referred to as Q* [Q star], which is believed to have an even stronger potential for AGI.
The lawsuit proceeds to assert that the tumultuous events of November 2023, including Altman’s dismissal and subsequent reinstatement as OpenAI’s CEO, demonstrated Microsoft’s “significant leverage” over the company. The lawsuit contends that the new board appointed after Altman’s return lacks the expertise to determine whether OpenAI has achieved AGI and, consequently, whether it has produced a product that exceeds the limits of Microsoft’s license.
The lawsuit is filed with the aim of compelling OpenAI to abide by the founding agreement and refocus on its mission to develop AGI for the betterment of humanity, rather than for the personal gain of the individual defendants and the world’s largest technology company,” the lawsuit asserts.
OpenAI’s agreement with Microsoft is under scrutiny by competition authorities in the US, the EU, and the UK.
Boston College law school professor Brian Quinn stated that there were several problems with the lawsuit. He mentioned that Musk lacked the standing to sue for breach of the OpenAI board’s certificate of incorporation since he was not a board member. The lawsuit attempts to address this by asserting that a 2015 email exchange between Musk and Altman, outlining the founding agreement and accompanied by the certificate, forms a contract. Quinn remarked that this argument was not a strong legal position.
A request for the return of Musk’s investment in OpenAI was also expected to be unsuccessful, as the lawsuit alleges that OpenAI deviated from its mission in 2023, well after Musk had ceased supporting the non-profit.
“It’s difficult to see that he has the right to enforce his ‘founding agreement’ or the certificate,” Quinn remarked.
OpenAI, Microsoft, and Google have been contacted for comment.
