The lawsuit alleges that CEO Sam Altman’s agreement with Microsoft has compromised the organization’s mission
Elon Musk has initiated legal action against OpenAI and its CEO, Sam Altman, alleging a departure from the organization’s original mission by prioritizing profit over humanity. As a founding board member of the AI company responsible for ChatGPT, Musk accuses Altman of violating OpenAI’s founding principles by entering into an investment agreement with Microsoft.
The lawsuit, filed in San Francisco on Thursday, asserts that OpenAI has shifted its focus towards developing artificial general intelligence (AGI) – a theoretical form of AI capable of performing tasks at or above human intelligence levels – for commercial gain rather than the betterment of humanity.
The lawsuit alleges that OpenAI Inc. has transitioned into a closed-source entity effectively controlled by Microsoft, the world’s largest technology company. With its new board in place, OpenAI is accused of not only developing but actively refining an AGI to maximize profits for Microsoft, rather than prioritizing the benefit of humanity.
The lawsuit begins with Musk’s frequent warning about the serious threat posed by AGI to humanity. It states, “While individuals like Mr. Musk view AGI as an existential threat, others view it as a means of profit and influence.” The lawsuit goes on to highlight that in the hands of for-profit entities like Google, AGI presents a “particularly severe and harmful threat to humanity.”
Musk and other technology experts fear that an AGI could escape human oversight and engage in actions that put the planet at risk.
The lawsuit alleges that Altman claimed to share Musk’s concerns regarding AGI and proposed the formation of a non-profit AI lab in 2015, which would serve as an antithesis to Google. This lab, now known as OpenAI, was established with the agreement of Musk, Altman, and Greg Brockman, OpenAI’s president, who is also named in the lawsuit. They aimed to create a lab with principles outlined in a founding agreement that would focus on benefiting humanity. The lab would operate as a not-for-profit entity and would make its technology freely available through open-source practices.
Musk, a key figure in the establishment of OpenAI, provided the majority of its early funding and was instrumental in its formation. Despite stepping away from OpenAI in 2018, Musk remained a driving force behind its creation. Microsoft has since become the largest investor in OpenAI’s profit-making division, which is overseen by Altman, following a deal in 2020.
According to the lawsuit, OpenAI, Altman, and Brockman allegedly deviated from their founding agreement in 2023 when they introduced GPT-4, the advanced model behind OpenAI’s ChatGPT chatbot, without adhering to the agreement’s principles. The design of GPT-4 was kept confidential, marking a significant departure from OpenAI’s initial mission.
The lawsuit argues that this secrecy is motivated more by commercial interests than safety concerns. The lawsuit seeks damages for breach of contract, breach of fiduciary duty, and unfair business practices.
The lawsuit asserts that GPT-4, considered AGI technology, is effectively owned by Microsoft, a situation purportedly beyond the scope of the licensing agreement between Microsoft and OpenAI. Furthermore, the lawsuit alleges that OpenAI is developing a model known as Q* (pronounced “Q star”) that could potentially qualify as AGI.
Additionally, the lawsuit contends that the turbulent events of November 2023, including Altman’s dismissal as CEO of OpenAI followed by reinstatement, indicate that Microsoft wields significant influence over the company. The lawsuit argues that the new board appointed after Altman’s reinstatement lacks the necessary expertise to determine whether OpenAI has achieved AGI and, consequently, whether it has produced a product that exceeds the bounds of Microsoft’s license.
The lawsuit aims to compel OpenAI to adhere to its founding agreement and refocus on developing AGI for the betterment of humanity, rather than serving the personal interests of the individual defendants and the world’s largest technology company.
OpenAI’s agreement with Microsoft is currently under scrutiny by competition authorities in the US, the EU, and the UK.
Brian Quinn, a professor at Boston College Law School in the US, highlighted several issues with the lawsuit. He noted that Musk lacks standing to sue for breach of the OpenAI board’s certificate of incorporation since he is not a board member. The lawsuit addresses this by arguing that a 2015 email exchange between Musk and Altman outlining the founding agreement, along with the certificate, forms a contract. However, Quinn believes this argument is not legally sound.
The lawsuit’s demand for the return of Musk’s investment in OpenAI is unlikely to succeed, as it alleges that OpenAI deviated from its mission in 2023, which was long after Musk ceased supporting the non-profit organization.
Quinn remarked, “It’s difficult to see how he has the right to enforce his ‘founding agreement’ or the certificate.”
OpenAI, Microsoft, and Google have been contacted for comment.