In court documents filed yesterday, OpenAI accuses Musk of orchestrating a “relentless” and “malicious” campaign designed to “take down OpenAI” after he left the organisation years ago.

The court filing, submitted to the US District Court for the Northern District of California, alleges Musk could not tolerate OpenAI’s success after he had “abandoned and declared [it] doomed.”

OpenAI is now seeking legal remedies, including an injunction to stop Musk’s alleged “unlawful and unfair action” and compensation for damages already caused.   

Origin story of OpenAI and the departure of Elon Musk

The legal documents recount OpenAI’s origins in 2015, stemming from an idea discussed by current CEO Sam Altman and President Greg Brockman to create an AI lab focused on developing artificial general intelligence (AGI) – AI capable of outperforming humans – for the “benefit of all humanity.”

Musk was involved in the launch, serving on the initial non-profit board and pledging $1 billion in donations.   

However, the relationship fractured. OpenAI claims that between 2017 and 2018, Musk’s demands for “absolute control” of the enterprise – or its potential absorption into Tesla – were rebuffed by Altman, Brockman, and then-Chief Scientist Ilya Sutskever. The filing quotes Sutskever warning Musk against creating an “AGI dictatorship.”

Following this disagreement, OpenAI alleges Elon Musk quit in February 2018, declaring the venture would fail without him and that he would pursue AGI development at Tesla instead. Critically, OpenAI contends the pledged $1 billion “was never satisfied—not even close”.   

Restructuring, success, and Musk’s alleged ‘malicious’ campaign

Facing escalating costs for computing power and talent retention, OpenAI restructured and created a “capped-profit” entity in 2019 to attract investment while remaining controlled by the non-profit board and bound by its mission. This structure, OpenAI states, was announced publicly and Musk was offered equity in the new entity but declined and raised no objection at the time.   

OpenAI highlights its subsequent breakthroughs – including GPT-3, ChatGPT, and GPT-4 – achieved massive public adoption and critical acclaim. These successes, OpenAI emphasises, were made after the departure of Elon Musk and allegedly spurred his antagonism.

The filing details a chronology of alleged actions by Elon Musk aimed at harming OpenAI:   

• Founding xAI: Musk “quietly created” his competitor, xAI, in March 2023.   
• Moratorium call: Days later, Musk supported a call for a development moratorium on AI more advanced than GPT-4, a move OpenAI claims was intended “to stall OpenAI while all others, most notably Musk, caught up”.   
• Records demand: Musk allegedly made a “pretextual demand” for confidential OpenAI documents, feigning concern while secretly building xAI.   
• Public attacks: Using his social media platform X (formerly Twitter), Musk allegedly broadcast “press attacks” and “malicious campaigns” to his vast following, labelling OpenAI a “lie,” “evil,” and a “total scam”.   
• Legal actions: Musk filed lawsuits, first in state court (later withdrawn) and then the current federal action, based on what OpenAI dismisses as meritless claims of a “Founding Agreement” breach.   
• Regulatory pressure: Musk allegedly urged state Attorneys General to investigate OpenAI and force an asset auction.   
• “Sham bid”: In February 2025, a Musk-led consortium made a purported $97.375 billion offer for OpenAI, Inc.’s assets. OpenAI derides this as a “sham bid” and a “stunt” lacking evidence of financing and designed purely to disrupt OpenAI’s operations, potential restructuring, fundraising, and relationships with investors and employees, particularly as OpenAI considers evolving its capped-profit arm into a Public Benefit Corporation (PBC). One investor involved allegedly admitted the bid’s aim was to gain “discovery”.   

Based on these allegations, OpenAI asserts two primary counterclaims against both Elon Musk and xAI:

• Unfair competition: Alleging the “sham bid” constitutes an unfair and fraudulent business practice under California law, intended to disrupt OpenAI and gain an unfair advantage for xAI.   
• Tortious interference with prospective economic advantage: Claiming the sham bid intentionally disrupted OpenAI’s existing and potential relationships with investors, employees, and customers. 

OpenAI argues Musk’s actions have forced it to divert resources and expend funds, causing harm. They claim his campaign threatens “irreparable harm” to their mission, governance, and crucial business relationships. The filing also touches upon concerns regarding xAI’s own safety record, citing reports of its AI Grok generating harmful content and misinformation.

The counterclaims mark a dramatic escalation in the legal battle between the AI pioneer and its departed co-founder. While Elon Musk initially sued OpenAI alleging a betrayal of its founding non-profit, open-source principles, OpenAI now contends Musk’s actions are a self-serving attempt to undermine a competitor he couldn’t control.

With billions at stake and the future direction of AGI in the balance, this dispute is far from over.

See also: Deep Cogito open LLMs use IDA to outperform same size models

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The company harnessed an immense data centre equipped with approximately 200,000 GPUs to develop Grok 3. According to xAI owner Elon Musk, this project utilised “10x” more computing power than its predecessor, Grok 2, with an expanded dataset that reportedly includes information from legal case filings.

Musk claimed that Grok 3 is a “maximally truth-seeking AI, even if that truth is sometimes at odds with what is politically-correct.”

The Grok 3 rollout includes a family of models designed for different needs. Grok 3 mini, for example, prioritises faster response times over absolute accuracy. However, particularly noteworthy are the new reasoning-focused Grok 3 models.

Dubbed Grok 3 Reasoning and Grok 3 mini Reasoning, these variants aim to emulate human-like cognitive processes by “thinking through” problems. Comparable to models like OpenAI’s o3-mini and DeepSeek’s R1, these reasoning systems attempt to fact-check their responses—reducing the likelihood of errors or missteps.

Grok 3: The benchmark results

xAI asserts that Grok 3 surpasses OpenAI’s GPT-4o in certain benchmarks, including AIME and GPQA, which assess the model’s proficiency in tackling complex problems across mathematics, physics, biology, and chemistry.

The early version of Grok 3 is also currently leading on Chatbot Arena, a crowdsourced evaluation platform where users pit AI models against one another and rank their outputs. The model is the first to break the Arena’s 1400 score.

According to xAI, Grok 3 Reasoning outperforms its rivals on a variety of prominent benchmarks:

These reasoning models are already integrated into features available via the Grok app. Users can select commands like “Think” or activate the more computationally-intensive “Big Brain” mode for tackling particularly challenging questions.

xAI has positioned the reasoning models as ideal tools for STEM (science, technology, engineering, and mathematics) applications, including mathematics, science, and coding challenges.

Guarding against AI distillation

Interestingly, not all of Grok 3’s internal processes are laid bare to users. Musk explained that some of the reasoning models’ “thoughts” are intentionally obscured to prevent distillation—a controversial practice where competing AI developers extract knowledge from proprietary models.

The practice was thrust into the spotlight in recent weeks after Chinese AI firm DeepSeek faced allegations of distilling OpenAI’s models to develop its latest model, R-1.

xAI’s new reasoning models serve as the foundation for a new Grok app feature called DeepSearch. The feature uses Grok models to scan the internet and Musk’s social platform, X, for relevant information before synthesising a detailed abstract in answer to user queries.

Accessing Grok 3 and committing to open-source

Access to the latest Grok model is currently tied to X’s subscription tiers. Premium+ subscribers, who pay $50 (~£41) per month, will receive priority access to the latest functionalities. 

xAI is also introducing a SuperGrok subscription plan, reportedly priced at either $30 per month or $300 annually. SuperGrok subscribers will benefit from enhanced reasoning capabilities, more DeepSearch queries, and unlimited image generation features.

The company also teased upcoming features. Within a week, the Grok app is expected to introduce a voice mode—enabling users to interact with the AI through a synthesised voice similar to Gemini Live.

Musk further revealed plans to release Grok 3 models via an enterprise-ready API in the coming weeks, with DeepSearch functionality included.

Although Grok 3 is still fresh, xAI intends to open-source its predecessor in the coming months. Musk claims that xAI will continue to open-source the last version of Grok.

“When Grok 3 is mature and stable, which is probably within a few months, then we’ll open-source Grok 2,” explains Musk.

The ‘anti-woke’ AI model

Grok has long been marketed as unfiltered, bold, and willing to engage with queries that competitors might avoid. Musk previously described the AI as “anti-woke,” presenting it as a model unafraid to touch on controversial topics. 

True to its promise, early models like Grok and Grok 2 embraced politically-charged queries, even veering into colourful language when prompted. Yet, these versions also revealed some biases when delving deep into political discourse.

“We’re working to shift Grok closer to politically-neutral,” said Musk.

However, whether Grok 3 achieves this goal remains to be seen. With such changes at play, analysts are already highlighting the potential societal impacts of introducing increasingly “truth-seeking” yet politically-sensitive AI systems.

With Grok 3, Musk and xAI have made a bold statement, pushing their technology forward while potentially fuelling debates around bias, transparency, and the ethics of AI deployment.

As competitors like OpenAI, Google, and DeepSeek refine their offerings, Grok 3’s success will hinge on its ability to balance accuracy, user demand, and societal responsibility.

See also: AI in 2025: Purpose-driven models, human integration, and more

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Musk revealed that the xAI team had successfully brought the Colossus 100k H100 training cluster online after a 122-day process. Not content with its existing capabilities, Musk stated, “over the next couple of months, it will double in size, bringing it to 200k (50k H200s).”

The scale of Colossus is unprecedented, surpassing every other cluster to date. For context, Google uses 90,000 GPUs while OpenAI utilises 80,000 GPUs—both of which have been surpassed by xAI’s creation, even prior to Colossus’ doubling in size over the coming months.

Developed in partnership with Nvidia, Colossus leverages some of the most advanced GPU technology on the market. The system initially employs Nvidia’s H100 chips, with plans to incorporate the newer H200 model in its expansion. This vast array of processing power positions Colossus as the most formidable AI training system currently available.

The H200, while recently superseded by Nvidia’s Blackwell chip unveiled in March 2024, remains a highly sought-after component in the AI industry. It boasts impressive specifications, including 141 GB of HBM3E memory and 4.8 TB/sec of bandwidth. However, the Blackwell chip raises the bar even further, with top-end capacity 36.2% higher than the H200 and a 66.7% increase in total bandwidth.

Nvidia’s response to the Colossus unveiling was one of enthusiasm and support. The company congratulated Musk and the xAI team on their achievement, highlighting that Colossus will not only be the most powerful system of its kind but will also deliver “exceptional gains” in energy efficiency.

Colossus’ processing power could potentially accelerate breakthroughs in various AI applications, from natural language processing to complex problem-solving algorithms. However, the unveiling of Colossus also reignites discussions about the concentration of AI power among a handful of tech giants and well-funded startups.

As companies like xAI push the boundaries of what’s possible in AI training, concerns about the accessibility of such advanced technologies to smaller organisations and researchers may come to the forefront.

As the AI arms race continues to heat up, all eyes will be on xAI and its competitors to see how they leverage these increasingly powerful systems. With Colossus, Musk and his team have thrown down the gauntlet and issued a challenge to rivals to match or exceed their efforts.

See also: Amazon partners with Anthropic to enhance Alexa

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The earlier suit had primarily focused on claims that OpenAI had breached its founding agreement to keep the company’s technology open source. The fresh complaint, however, takes a more aggressive stance.

Musk’s legal team alleges that Altman and Brockman “assiduously manipulated Musk into co-founding their spurious non-profit venture” by making promises about OpenAI’s safety and transparency that set it apart from profit-driven alternatives. The lawsuit goes so far as to claim that assurances about OpenAI’s nonprofit structure were “the hook for Altman’s long con.”

Marc Toberoff, Musk’s lawyer, told The New York Times, “This is a much more forceful lawsuit.” Indeed, the new suit ups the ante by accusing OpenAI of breaching federal racketeering laws in what it describes as a conspiracy to defraud Musk.

The complaint paints a picture of extensive deception, alleging that Altman and OpenAI lured Musk into co-founding the organisation under false pretences of AI safety and openness. Musk claims he invested significant resources and recruited top scientists based on these assurances, only to see the company pivot towards a profit-making model that compromised its original mission.

The lawsuit details allegations of self-dealing and conflicts of interest by Altman, which Musk argues led to their falling out and ultimately compromised OpenAI’s founding principles. Reports of withheld technology and a compromised Board of Directors have raised serious ethical concerns about the company’s operations and future direction.

Furthermore, the lawsuit takes aim at OpenAI’s partnership with Microsoft. It claims that the contract between the two tech giants includes a clause that would revoke Microsoft’s rights to OpenAI’s technology once artificial general intelligence (AGI) is achieved. This allegation, if proven true, could have far-reaching implications for the future of AI development and corporate partnerships in the tech industry.

The legal action seeks not only damages and restitution but also punitive measures against the defendants for allegedly exploiting Musk’s contributions. The tech billionaire is pushing for Altman to be divested of what the lawsuit describes as “ill-gotten gains” resulting from the alleged deception.

Musk’s complaint goes beyond mere contractual disputes, invoking serious legal charges including fraud, breach of contract, wire fraud, and violations of RICO (Racketeer Influenced and Corrupt Organizations) law against Altman, Brockman, and OpenAI.

The revival of Musk’s legal battle against OpenAI comes at a time of increasing scrutiny of AI technologies and their potential impact on society. As one of the original co-founders of OpenAI, Musk’s allegations carry significant weight and could potentially reshape the narrative around the company’s evolution from a non-profit to a for-profit entity.

However, it’s worth noting that OpenAI has consistently maintained that its transition to a “capped-profit” model was necessary to secure the funding required for its ambitious AI research and development goals. The company has also emphasised its commitment to developing AI in a responsible and beneficial manner.

The tech community and legal experts will be watching closely as this case progresses, given its potential to set precedents for how AI companies are held accountable to their stated missions and founding principles.

(Photo by Jonathan Kemper)

See also: Meta’s AI strategy: Building for tomorrow, not immediate profits

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Musk announced this collaboration on his social media platform, X, marking a key development in xAI’s goal to assemble what he has repeatedly called “the world’s biggest supercomputer.”

Server racks are an integral part of high-performance computing infrastructure, providing the skeleton needed to store and organise the various computing components necessary for supercomputer operations. These engineered rooms are designed to promote optimal efficiency and airflow—which is of vital importance in the world of supercomputing—by taking advantage of limited floor space.

Server racks, such as those used in xAI’s Grok for large-scale AI model training, are essential components of the server infrastructure that support the immense computational power required for these workloads. Hundreds of thousands of power-hungry AI chips are needed for these projects to achieve the desired scale, and there are insufficient production cycles available in semiconductor foundries.

xAI’s project is massive; thus, heat management was especially challenging on their scale. Current technology just isn’t fast enough, and supercomputers—which can perform calculations thousands of times faster—get so hot that the chips inside them degrade in performance over time. This issue is only exacerbated by the need for thousands of power-hungry AI chips required to train more advanced AI models like xAI’s Grok.

Partnership details: Dell and Super Micro’s roles

According to Musk, Dell Technologies will be responsible for assembling half of the racks for xAI’s supercomputer. Super Micro Computer, referred to as “SMC” by Musk, will provide the remaining half. Super Micro, known for its close ties with chip firms like Nvidia and its expertise in liquid-cooling technology, has confirmed this partnership to Reuters.

San Francisco-based Super Micro is renowned for its innovative approaches to server design, particularly its liquid-cooling technology. This technology is crucial for managing the extreme heat generated by high-performance computing systems, allowing for more efficient operation and potentially extending the lifespan of components.

In a related development, Dell CEO Michael Dell announced on X that the company is collaborating with Nvidia to build an “AI factory” that will power the next version of xAI’s chatbot, Grok. This collaboration underscores the extensive computational resources that advanced AI model training requires.

Musk has previously stated that training the Grok 2 model required approximately 20,000 Nvidia H100 graphic processing units (GPUs), and future versions might need up to 100,000 of these chips. According to The Information, the proposed supercomputer is expected to be operational by fall 2025.

Both Dell Technologies and Super Micro Computer bring extensive experience and expertise to this project. Dell has been a trusted supplier of servers and data centre infrastructure for decades, powering many of the world’s largest cloud computing platforms and supercomputing facilities, such as the Frontera supercomputer at the Texas Advanced Computing Center.

Super Micro has established itself as a leader in providing high-performance, energy-efficient server solutions. Their innovations in liquid cooling and blade server architectures are widely utilised by cloud providers, enterprises, and research institutions for demanding workloads like AI and high-performance computing.

Implications for AI and supercomputing technologies

The collaboration between xAI, Dell Technologies, and Super Micro Computer represents a significant milestone in the advancement of AI and supercomputing technologies. As the project progresses, it will likely push the boundaries of high-performance computing and contribute to the rapid evolution of artificial intelligence capabilities.

This partnership also highlights the growing importance of specialised hardware in the AI industry. As AI models become increasingly complex and data-intensive, the demand for high-performance computing solutions is expected to continue rising, potentially reshaping the landscape of the tech industry in the coming years.

See also: Dell, Intel and University of Cambridge deploy the UK’s fastest AI supercomputer

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Musk had initially sued OpenAI in March 2024, alleging breach of contracts, unfair business practices, and failure in fiduciary duty. He claimed that his contributions to the company were made “in exchange for and in reliance on promises that those assets were irrevocably dedicated to building AI for public benefit, with only safety as a countervailing concern.”

The lawsuit sought remedies for “breach of contract, promissory estoppel, breach of fiduciary duty, unfair business practices, and accounting,” as well as specific performance, restitution, and damages.

However, Musk’s filings to withdraw the case provided no explanation for abandoning the lawsuit. OpenAI had previously called Musk’s claims “incoherent” and that his inability to produce a contract made his breach claims difficult to prove, stating that documents provided by Musk “contradict his allegations as to the alleged terms of the agreement.”

The withdrawal of the lawsuit comes at a time when Musk is strongly opposing Apple’s plans to integrate ChatGPT into its operating systems.

During Apple’s keynote event announcing Apple Intelligence for iOS 18, iPadOS 18, and macOS Sequoia, Musk threatened to ban Apple devices from his companies, calling the integration “an unacceptable security violation.”

Despite assurances from Apple and OpenAI that user data would only be shared with explicit consent and that interactions would be secure, Musk questioned Apple’s ability to ensure data security, stating, “Apple has no clue what’s actually going on once they hand your data over to OpenAI. They’re selling you down the river.”

Since bringing the lawsuit against OpenAI, Musk has also created his own AI company, xAI, and secured over $6 billion in funding for his plans to advance the Grok chatbot on his social network, X.

While Musk’s reasoning for dropping the OpenAI lawsuit remains unclear, his actions suggest a potential shift in focus towards advancing his own AI endeavours while continuing to vocalise his criticism of OpenAI through social media rather than the courts.

See also: DuckDuckGo releases portal giving private access to AI models

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“We believe that users should be able to create, distribute, and consume material related to sexual themes as long as it is consensually produced and distributed. Sexual expression, visual or written, can be a legitimate form of artistic expression,” X’s updated ‘adult content’ policy states.

The policy further elaborates: “We believe in the autonomy of adults to engage with and create content that reflects their own beliefs, desires, and experiences, including those related to sexuality. We balance this freedom by restricting exposure to adult content for children or adult users who choose not to see it.”

Users can mark their posts as containing sensitive media, ensuring that such content is restricted from users under 18 or those who haven’t provided their birth dates.

While X’s violent content rules have similar guidelines, the platform maintains a strict stance against excessively gory content and depictions of sexual violence. Explicit threats or content inciting or glorifying violence remain prohibited.

X’s decision to allow graphic content is aimed at enabling users to participate in discussions about current events, including sharing relevant images and videos. 

Although X has never outright banned porn, these new clauses could pave the way for developing services centred around adult content, potentially creating a competitor to services like OnlyFans and enhancing its revenue streams. This would further Musk’s vision of X becoming an “everything app,” similar to China’s WeChat.

A 2022 Reuters report, citing internal company documents, indicated that approximately 13% of posts on the platform contained adult content. This percentage has likely increased, especially with the proliferation of porn bots on X.

See also: Elon Musk’s xAI secures $6B to challenge OpenAI in AI race

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

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Musk has some history in the AI space. He co-founded OpenAI in 2015 alongside the current CEO, Sam Altman, and others. However, he parted ways with the company in 2018 due to disagreements over its priorities and direction, specifically OpenAI’s move away from open-source AI models and towards proprietary, closed models that they sell access to. Musk became one of OpenAI’s most vocal critics after that.

Fast-forward to July of last year, and Musk formally re-entered the generative AI arena with the announcement of xAI. Since then, the company has been aggressively working on building advanced AI systems that it claims will be “truthful, competent, and maximally beneficial for all of humanity.”

One of xAI’s first offerings is Grok, an edgier version of OpenAI’s ChatGPT. It is currently available only to X Premium subscribers. According to benchmarks shared by xAI, Grok-1 outperformed models like Llama-2-70B and GPT-3.5 but still lagged behind Anthropic’s Claude3, OpenAI’s GPT-4, Google’s Gemini, and Meta’s open-source Llama 3.

This latest funding round saw investments from big names, including Andreessen Horowitz, Sequoia Capital, and even Saudi Arabian Prince Al Waleed bin Talal. Last year, filings showed xAI was looking to raise up to $1 billion in equity investments, and just a few months ago, reports surfaced that they had increased their target to a whopping $6 billion—a figure Musk initially denied.

Developing the hardware capable of powering AI at this sophisticated level is no small feat and certainly is costly. Just last week, a report revealed that xAI would need an astonishing 100,000 of Nvidia’s current H100 chips for a supercomputer to power an upgraded version of Grok, each costing between $30,000 to $40,000.

Musk has ambitious plans for these powerful resources. He reportedly informed investors that the goal is to launch this new data centre by fall 2025, marking a significant step forward in xAI’s technological capabilities.

Continuing this AI race for chips, talent, and technology will be expensive. Big tech firms have already invested billions into AI startups like Anthropic, on top of what companies like Google, Apple, Amazon, Microsoft, and Meta are investing in their own AI projects.

Microsoft, in particular, has struck a multi-billion-dollar partnership with OpenAI, whose CEO, Sam Altman, is reportedly pursuing trillions more to revamp the global chip industry.

Tesla will continue to hire AI engineers for self-driving cars, even though Elon Musk has previously stated a preference for not bringing most of those AI and robotics capabilities in-house, to allow greater focus on external ventures. He talks about breaking free from the traditional constraints of auto manufacturing as part of a broader agenda.

At the same time, Tesla is gearing up for its annual meeting on June 13, where shareholders will start voting on whether to reinstate Musk’s record-breaking $56 billion pay package, a significant development given Musk’s substantial influence across various tech sectors.

Over the years, Musk has made substantial contributions to AI research, and now his venture, xAI, is at the forefront of AI developments. It will be fascinating to watch how these efforts unfold and see which of xAI’s contributions will secure a place in the annals of AI history during this rapid evolution.

See also: Elon Musk’s xAI open-sources Grok

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

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The release fulfils Musk’s promise to open source Grok in an effort to accelerate AI development and adoption.

XAI announced the move in a blog post, stating: “We are releasing the base model weights and network architecture of Grok-1, our large language model. Grok-1 is a 314 billion parameter Mixture-of-Experts model trained from scratch by xAI.”

Grok had previously only been available through Musk’s social network X as part of the paid X Premium+ subscription. By open sourcing it, xAI has empowered developers, companies, and enthusiasts worldwide to leverage the advanced language model’s capabilities.

The model’s release includes its weights, which represent the strength of connections between its artificial neurons, as well as documentation and code. However, it omits the original training data and access to real-time data streams that gave the proprietary version an advantage.

Named after a term meaning “understanding” from Douglas Adams’ Hitchhiker’s Guide series, Grok has been positioned as a more open and humorous alternative to OpenAI’s ChatGPT. The move aligns with Musk’s battle against censorship, “woke” ideology displayed by models like Gemini, and his recent lawsuit claiming OpenAI violated its nonprofit principles.

While xAI’s open source release earned praise from open source advocates, some critics raised concerns about potential misuse facilitated by unrestricted access to powerful AI capabilities.

You can find Grok-1 on GitHub here.

(Image Credit: xAI)

See also: Anthropic says Claude 3 Haiku is the fastest model in its class

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Musk’s lawsuit accuses OpenAI of breaching its non-profit status and reneging on a founding agreement to keep the organisation non-profit and release its AI technology publicly. However, OpenAI has refuted these allegations, stating that there is no such agreement with Musk and branding it as a mere “fiction.”

According to court filings, OpenAI asserts that there is no existing agreement with Musk, contradicting his assertions in the lawsuit.

The organisation further alleges that Musk had actually supported the idea of transitioning OpenAI into a for-profit entity under his control. It is claimed that Musk advocated for full control of the company as CEO, majority equity ownership, and even suggested tethering it to Tesla for financial backing. However, negotiations between Musk and OpenAI did not culminate in an agreement, leading to Musk’s withdrawal from the project.

OpenAI’s rebuttal highlights purported emails exchanged between Musk and the organisation, indicating his prior knowledge and support for its transition to a for-profit model. The company suggests that Musk’s lawsuit is driven by his desire to claim credit for OpenAI’s successes after he disengaged from the project.

In response to Musk’s legal action, OpenAI has portrayed his motives as self-serving rather than altruistic, asserting that his lawsuit is a bid to further his own commercial interests under the guise of championing humanity’s cause.

Meanwhile, Musk’s own foray into the realm of artificial intelligence with his company xAI has drawn attention.

Musk announced xAI’s intention to open source its Grok chatbot shortly after OpenAI’s publication of emails purportedly demonstrating Musk’s prior awareness of its non-open source intentions. While this move could be interpreted as a retaliatory gesture against OpenAI, it also presents an opportunity for xAI to garner feedback from developers and enhance its technology.

The legal clash between Musk and OpenAI underscores the complexities surrounding the development and governance of AI technologies, as well as the competing interests within the tech industry.

(Photo by Tim Mossholder on Unsplash)

See also: OpenAI announces new board lineup and governance structure

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A blog post from OpenAI, in response to a lawsuit filed by Musk against the company, revealed email communications from 2015 to 2018 when Musk was still involved with the company’s operations. 

In one email from 2017 – as OpenAI was exploring a transition to a for-profit model to secure more funding – Musk reportedly wanted majority equity, control of the board of directors, and the CEO position. However, OpenAI felt this level of control by one individual would go against its mission.

“Elon wanted us to merge with Tesla or he wanted full control,” wrote OpenAI in their blog post. “Elon left OpenAI, saying there needed to be a relevant competitor to Google/DeepMind and that he was going to do it himself. He said he’d be supportive of us finding our own path.”

When the merger discussions stalled, Musk suggested in 2018 that OpenAI could become attached to Tesla as a path for the automaker to provide funding. “Tesla is the only path that could even hope to hold a candle to Google,” Musk wrote in an email forwarded to OpenAI.

The blog post indicates these merger or acquisition proposals from Musk did not ultimately succeed, and he soon left the company. In a final email cited, Musk said his “probability assessment of OpenAI being relevant to DeepMind/Google without a dramatic change in execution and resources is 0%.”

Musk’s lawsuit, filed in March 2024, accuses OpenAI of breach of contract, breach of fiduciary duty and unfair competition. It alleges the company has become a “closed-source de facto subsidiary” of Microsoft after taking $13 billion in investment from the tech giant.

OpenAI denies the claims, stating Musk was aware the “Open” in its name did not mean it had to open-source all its AI technology to the public. The company expressed sadness that the situation has devolved into litigation with someone they “deeply admired.”

Musk has not yet publicly responded to the blog post from OpenAI. The lawsuit seeks to compel OpenAI to make its research freely available and prohibit exclusive arrangements benefiting individual companies.

“We intend to move to dismiss all of Elon’s claims,” says OpenAI.

(Photo by Austin Ramsey on Unsplash)

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The legal battle, unfolding in the Superior Court of California for the County of San Francisco, revolves around OpenAI’s departure from its foundational mission of advancing open-source artificial general intelligence (AGI) for the betterment of humanity.

Musk was a co-founder and early backer of OpenAI. According to Musk, Altman and Greg Brockman (another co-founder and current president of OpenAI) convinced him to bankroll the startup in 2015 on promises that it would remain a nonprofit.

In his legal challenge, Musk accuses OpenAI of straying from its principles through a collaboration with Microsoft—alleging that the partnership prioritises proprietary technology over the original ethos of open-source advancement.

Musk’s grievances include claims of contract breach, violation of fiduciary duty, and unfair business practices. He calls upon OpenAI to realign with its nonprofit objectives and seeks an injunction to halt the commercial exploitation of AGI technology.

At the heart of the dispute is OpenAI’s recent launch of GPT-4 in March 2023. Musk contends that unlike its predecessors, GPT-4 represents a shift towards closed-source models—a move he believes favours Microsoft’s financial interests at the expense of OpenAI’s altruistic mission.

Founded in 2015 as a nonprofit AI research lab, OpenAI transitioned into a commercial entity in 2020. OpenAI has now adopted a profit-driven approach, with revenues reportedly surpassing $2 billion annually.

Musk, who has long voiced concerns about the risks posed by AI, has called for robust government regulation and responsible AI development. He questions the technical expertise of OpenAI’s current board and highlights the removal and subsequent reinstatement of Altman in November 2023 as evidence of a profit-oriented agenda aligned with Microsoft’s interests.

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