OpenAI Co-founder, Elon Musk Sues Altman Over Contract Breach, Accuses the Firm of Going “For-Profit”

Sam Altman, the owner of the artificial intelligence company OpenAI, has reportedly been sued by Elon Musk, CEO of Tesla, SpaceX, and the social media platform X. The basis of this claim is that OpenAI’s multi-billion dollar agreement with Microsoft has allegedly resulted in a breach of their original nonprofit agreement.

Musk, the Co-Founder of OpenAI wanted the Artificial Intelligence Firm to Keep a Non-Profit Status

For those who don’t know, Elon Musk was one of the co-founders of ChatGPT-maker, OpenAI back in 2015 when the company signed an agreement to create open-source artificial intelligence systems to benefit humanity as a whole. Three years later, Musk stepped down from the board in 2018 because he wanted to focus on other ventures.

However, Musk now claims that OpenAI’s recent partnerships, such as the one with Microsoft, have diverted the organization from its initial mission. According to the lawsuit, Musk alleges that Brockman and Altman convinced him to invest in the company under the pretense of eliminating the competitive threat posed by Google.

The ‘For-Profit’ Model Following ChatGPT’s Launch

Following the success of ChatGPT, Musk further alleges that OpenAI has embraced a for-profit model, prioritizing the commercialization of their research alongside Microsoft, a global technology giant, that has invested over $13 billion to date.

The lawsuit clearly highlights Musk’s dissatisfaction with OpenAI’s recent shift in priorities, which is particularly concerning given his significant financial contributions as the company’s largest investor from 2016 to 2020, exceeding $44 million. Not only that, but he also claims to have been offered a stake in the company which he ultimately declined due to ethical concerns.

This is all we know for now, but rest assured that we will keep you updated as new information becomes available.


Muhammad Qasim

Qasim's deep love for technology and gaming drives him to not only stay up-to-date on the latest developments but also to share his informed perspectives with others through his writing. Whether through this or other endeavors, he is committed to sharing his expertise and making a meaningful contribution to the world of tech and gaming.