Elon Musk filed a lawsuit against OpenAI and its founder, Sam Altman, for tricking investors. The lawsuit alleges that OpenAI, initially aimed at operating as a non-profit business for AI developments, turned into a profit-driven business. The tech tycoon accused OpenAI of deceiving its partners and investors by driving a for-profit business instead of using them for Artificial intelligence (AI) growth and development.
Musk filed a lawsuit Monday suing @OpenAI and co-founders Sam Altman and Greg Brockman, alleging they “manipulated” Musk to help create the company. The lawsuit claims OpenAI breached the company's initial commitment to benefit humanity in favor of business interests. @elonmusk pic.twitter.com/m4J46flQSI
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— National Business Daily (@NBDPress) August 6, 2024
Elon Musk Accuses OpenAI Operated for Commercial Benefits
On August 5, Bloomberg reported that Musk filed a case against OpenAI in the US District Court of Northern District of California, alleging that the company intentionally deceived its financing partners based on a fake ‘humanitarian mission’. Elon Musk and other investors financed the project to support AI developments and tackle humanitarian concerns about the threats posed by artificial intelligence. In contrast, the firm puts commercial interest and personal profits ahead of public amenities.
First, Musk sued Altman and OpenAI in a similar case on 12 June. At that time, he claimed that the platform’s Artificial General Intelligence (AGI) ventured to profit multi-billion dollar company Microsoft Corp. He even pressed that OpenAI become a subsidiary of Microsoft. However, it remained unclear what pushed Musk to withdraw his filing a day before the judge was set to hear OpenAI’s request for dismissal.
At that time, the AI firm denied Musk’s allegations, saying that Musk wanted to access proprietary information through this discovery process. OpenAI disagreed with operation claims, stating the company is still a non-profit organization and publicly provides open-source technology.
OpenAI Responds to Musk’s Allegations
In the recent lawsuit, Musk claimed Altman converted OpenAI into a for-profit corporation by partnering with Microsoft.
The court filing states:
OpenAI and Microsoft stand to make a fortune selling this technology to the public, which would not be possible if the non-profit made its research and technology freely available, as Altman had repeatedly promised Musk.
In response to these allegations, OpenAI stated in the previous court filing that Musk sent emails to the company, suggesting it turn into a for-profit business. These details have already been published in OpenAI’s blog post. Not only does Elon Musk accuse the AI project of being misoperated, but regulatory watchdogs have also exercised intense scrutiny on it. Similarly, the Federal Trade Commission is already investigating OpenAI for possible violations of Consumer protection laws.
The US Securities and Exchange Commission (SEC) also probed whether OpenAI’s operations misled investors. Notably, some of the firm’s high-profile partners also exited the company, stating that the firm has prioritized rolling out new products over the safety of users.
AI Tokens Hold a Stronger Position in the Crypto Market
Following the news, the top 10 AI tokens by market capitalization witnessed recovery despite the bloodbath in the whole crypto market. Even BTC and ETH suffered huge price depreciation as the market lost more than $1.06 billion. However, AI tokens, including Internet Computer (ICP), Akash Network (AKT), AIOZ network (AIOZ), and Arkham (ARKM), sustained their recent gains significantly, including Internet Computer (ICP), Akash Network (AKT), AIOZ network(AIOZ), and Arkham (ARKM).
Data provided by CoinGecko suggest that despite the bears taking control, AI tokens performed well in the past 24 hours. This significant move reflects investors’ increased trust in such AI projects, and these can perform extraordinarily in the bull market in the near future.
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