OpenAI on Musk Lawsuit: "They're Picking Fights Because We're Succeeding..."

Rebuttal via Internal Email... "Musk Had Ulterior Motives"
Legal Experts Say "Musk's Victory Won't Be Easy"

Elon Musk, CEO of Tesla, has filed a lawsuit against OpenAI, the developer of ChatGPT, and its CEO Sam Altman, citing 'violation of founding principles.' Meanwhile, OpenAI is reportedly explaining to its employees that Musk regrets leaving the company.

According to CNBC on the 1st (local time), OpenAI's Chief Strategy Officer (CSO) Jason Kwon stated in an email to employees that "Musk is likely regretting that he is no longer connected to the company he effectively co-founded." In other words, Musk is nitpicking after seeing OpenAI doing well following his departure.

Elon Musk, CEO of Tesla
[Photo by Yonhap News]

Musk co-founded OpenAI in 2015 alongside Altman and Greg Brockman. However, after clashing with Altman over the direction of OpenAI, he stepped down from his co-chair position in 2018. Subsequently, Microsoft (MS) invested $13 billion in OpenAI in 2019, acquiring a 49% stake and effectively replacing Musk's position.

On the 29th of last month, Musk filed a lawsuit in the San Francisco Superior Court demanding that OpenAI and Altman cease their for-profit business and release AI technology as open source.

In the complaint submitted to the court, Musk argued, "To this day, OpenAI's website continues to proclaim that the company's mission is to ensure that AGI (Artificial General Intelligence) benefits all of humanity," but "it has effectively transformed into a subsidiary of Microsoft, the world's largest technology company."

However, CSO Kwon rebutted, stating, "OpenAI is an independent company," and asserted, "We continue to strive for the development of AGI for the universal benefit of humanity."

While he did not dispute Musk's central role in OpenAI's early days, he expressed disappointment regarding the lawsuit. He said, "This is especially true considering that Musk has maintained close cooperation with some of you who are still driving projects here."

Sam Altman, CEO of OpenAI [Photo by Yonhap News]

CSO Kwon claimed, "Musk had ulterior motives," and alleged, "At one point, he planned to gain majority ownership of the company, take control, and later merge it with Tesla."

Musk's legal team argues that Musk invested more than $44 million in OpenAI from 2016 to September 2020 and assembled a team of 'top talent,' thus holding a significant stake. They also emphasized that Musk spent nearly $20 million on OpenAI in 2017, calling it "more than any other patron."

However, local legal experts have analyzed that Musk's claim regarding the 'company's founding principles' is closer to an agreement than a contract, making his chances of winning slim. James D'Naro Cyphero, a lawyer and senior technologist, said, "It will be difficult to present such a general agreement as a well-drafted contract," and described it as "a legally tenuous lawsuit."