Article Image

IPFS News Link • Lawsuits

Juicy: Elon Musk Sues Sam Altman For 'Breach Of Contract'


"These events of 2023 constitute flagrant breaches of the Founding Agreement, which Defendants have essentially turned on its head. To this day, OpenAI, Inc.'s website continues to profess that its charter is to ensure that AGI [artificial general intelligence technology] "benefits all of humanity,"" the lawsuit reads.

It continues: "In reality, however, OpenAI, Inc. has been transformed into a closed-source de facto subsidiary of the largest technology company in the world: Microsoft. Under its new Board, it is not just developing but is actually refining an AGI to maximize profits for Microsoft, rather than for the benefit of humanity."

Besides breach of contract, Musk argues that OpenAI also violates fiduciary duty and unfair business practices and asks the startup to revert to an open source model to better humanity. The billionaire requests an injunction to prevent OpenAI, Altman, and or president Gregory Brockman – as well as Microsoft – from profiting off the startup's AI products.

Musk alleges that Altman, Brockman, and Microsoft conspired together to remove the startup's board members, who were tasked with upholding its foundational mission.

"Mr. Altman hand-picked a new Board that lacks similar technical expertise or any substantial background in AI governance, which the previous board had by design," the lawsuit said, adding, "The new Board consisted of members with more experience in profit-centric enterprises or politics than in AI ethics and governance. They were also reportedly 'big fans of Altman.'"