Elon Musk Revives Lawsuit Against OpenAI: A Clash Over AI's Future

Introduction

Elon Musk isn’t one to back down easily. He initially withdrew his lawsuit against OpenAI in July. However, he’s back in the ring as of August. He’s swinging harder than ever. This time, he’s not just aiming at OpenAI. He’s also targeting new names like Microsoft. He’s brought in LinkedIn co-founder Reid Hoffman and former OpenAI board member Dee Templeton.

New Allies and Defendants

But that’s not all. The amended complaint also introduces new players on Musk’s side: Shivon Zilis, a Neuralink executive and former OpenAI board member, and Musk’s own AI venture, xAI.

The Origin of OpenAI

Musk helped launch OpenAI with a vision: to develop artificial intelligence that benefits all of humanity. It started as a non-profit, but things have changed since then. Musk parted ways with the company in 2018 over disagreements about its direction.

Accusations Against OpenAI and Microsoft

In the lawsuit, Musk’s lawyers claim that OpenAI is now trying to crush competitors like xAI. They argue that OpenAI is “actively trying to eliminate competitors” by pressuring investors not to fund rival companies. Moreover, they allege that OpenAI is unfairly benefiting from Microsoft’s resources, hinting at what they call a “de facto merger.”

Impact on xAI

The complaint filed in federal court in Oakland, California, states that xAI has been harmed in several ways. For instance, it can’t license OpenAI’s technology due to Microsoft’s exclusive rights. Additionally, xAI can’t access computing resources from Microsoft on favorable terms like OpenAI does. There’s also mention of an exclusive exchange of sensitive information between OpenAI and Microsoft.

Reid Hoffman’s Alleged Conflict of Interest

Reid Hoffman finds himself in a tricky spot. The lawsuit alleges that his roles on the boards of both Microsoft and OpenAI gave him an unfair advantage. Additionally, his position at Greylock, an investment firm, contributed to this perception. Greylock invested in Inflection, an AI startup that Microsoft acquired earlier this year—a company that could be seen as a competitor to OpenAI.

Dee Templeton’s Role

As for Dee Templeton, the amended filing suggests she was in a position to facilitate agreements between Microsoft and OpenAI that might violate antitrust laws. The complaint emphasizes that allowing individuals to serve on boards of potentially competing companies undermines the purpose of antitrust regulations.

Inclusion of California Attorney General

Interestingly, California Attorney General Rob Bonta is also named as a defendant. Reports suggest that OpenAI is in discussions with Bonta’s office about changing its corporate structure.

Shivon Zilis Joins the Fray

Shivon Zilis, who stepped down from OpenAI’s board in 2023 after about four years, is cited as an “injured employee” under California law. The complaint mentions that she raised concerns internally about OpenAI’s dealings, concerns that echoed Musk’s but went unheeded.

Zilis isn’t just a professional associate of Musk; she has close personal ties as well. She’s worked with him at Tesla and Neuralink.

A Glimpse into OpenAI’s Internal Proposals

One intriguing detail from the 107-page complaint is that OpenAI CEO Sam Altman had proposed selling the company’s own cryptocurrency. This proposal occurred back in January 2018, before the shift to a capped-profit model. Musk reportedly dismissed this idea.

The Core of the Lawsuit

The core of the lawsuit remains consistent: Musk and his co-plaintiffs believe that OpenAI has strayed from its original mission. They argue that the company has benefited from Musk’s early involvement but has abandoned its non-profit pledge to make AI advancements accessible to all. The complaint states, “No amount of clever drafting nor surfeit of creative dealmaking can obscure what is happening here.”

OpenAI’s Response

OpenAI isn’t taking these accusations lying down. The company has sought to dismiss the lawsuit, labeling it as “blusterous” and without merit.

Conclusion

This legal battle raises critical questions about the future of AI development and the ethical responsibilities of tech companies. Will Musk’s actions prompt a reevaluation of OpenAI’s direction? Only time will tell.