Home ยป Legal Action by Elon Musk Against Sam Altman, Gregory Brockman, and OpenAI for Alleged Misappropriation of Nonprofit Funds.

Legal Action by Elon Musk Against Sam Altman, Gregory Brockman, and OpenAI for Alleged Misappropriation of Nonprofit Funds.

Elon Musk filed a lawsuit against Sam Altman, CEO of OpenAI, and Gregory Brockman, the Chairman of the board, alleging breach of contract for profiting from GPT-4 without disclosing internal structure and taking investment from Microsoft until Microsoft gained control of the organization.

Musk’s complaint states that he donated money to OpenAI under the agreement that they would develop technology for the benefit of humanity, not for profit, and that the technology would be made public except for security reasons.

The structure of OpenAI is highly complex, with the original organization being non-profit but relying on for-profit subsidiaries. Musk’s lawsuit also involves 8 other companies within the OpenAI group.

While the founding stated that the technology would be used for the benefit of humanity without profit, the complaint mentions an email from Sam Altman inviting Musk to donate, stating his intention to create a non-profit organization, but developers would receive returns similar to successful start-ups.

Source: Courthouse News

TLDR: Elon Musk sues OpenAI’s CEO and Chairman for breaching contract by profiting from GPT-4 without transparency and allowing Microsoft to gain control of the organization. Musk claims he donated to OpenAI under the premise of developing technology for the public good, not for profit.

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