Elon Musk's New Lawsuit Claims OpenAI Is Sitting on Illegal Profits
Elon Musk is suing OpenAI for billions, alleging they abandoned their non-profit status and unjustly profited from his initial investment.Summary
Elon Musk, despite being a co-founder of OpenAI, has filed a lawsuit against the company seeking between $79 billion and $134 billion in damages. He claims OpenAI abandoned its original non-profit mission in favor of a for-profit structure through its partnership with Microsoft, resulting in “wrongful gains.” Musk initially invested $38 million in seed funding and provided crucial support in the company’s early stages, believing it would remain dedicated to open research for the benefit of humanity.
Financial economist C. Paul Wazzan estimates OpenAI earned between $65.5 billion and $109.43 billion in these alleged wrongful gains, while Microsoft earned between $13.3 billion and $25.06 billion. The lawsuit stems from a growing antagonism between Musk and OpenAI CEO Sam Altman, who once were allies. Musk feels OpenAI has become a “closed‑source de facto subsidiary of Microsoft,” violating the initial understanding of his investment.
In addition to this lawsuit, Musk has also filed another claim accusing OpenAI and Apple of monopolistic practices, alleging they are unfairly hindering the ranking of his xAI app on the App Store. While the success of Musk’s lawsuits remains uncertain, he is actively pursuing legal action against both OpenAI and Apple.
(Source：Androidheadlines)