OpenAI Counters Musk's Lawsuit with Evidence of Prior For-Profit Proposals
OpenAI has responded to Elon Musk's lawsuit by releasing emails and texts that suggest Musk's claims are misleading. The core of Musk's lawsuit accuses OpenAI of abandoning its non-profit mission. OpenAI contends that Musk's complaints stem from his own unsuccessful attempts to control the company.
Musk's Proposals and OpenAI's Rejection
Evidence reveals Musk proposed a for-profit component for OpenAI as early as 2015. In 2017, facing financial challenges, OpenAI considered merging with a hardware startup, potentially Cerebras. Musk demanded majority equity and CEO control, even creating a public benefit corporation called "Open Artificial Intelligence Technologies, Inc." OpenAI rejected his terms.
Musk then suggested OpenAI spin into Tesla with a substantial budget, which OpenAI also declined. Following these rejections, Musk resigned from OpenAI in 2018. OpenAI claims to have offered Musk equity in its for-profit wing multiple times, but he declined. They argue he should compete in the market, not the courtroom. For context on market competition, see Google's AI-powered search for enterprises.
xAI's Funding and Allegations Against OpenAI
Musk's xAI, launched last year, released the Grok AI model and offers an API for integration. Musk's lawsuit alleges OpenAI restricts xAI's funding by preventing investors from supporting both companies. However, xAI recently secured $6 billion in funding, making it one of the best-funded AI companies. This relates to recent funding news, such as Databricks securing $9.5 billion.
The lawsuit also claims OpenAI and Microsoft illegally share information and resources, echoing concerns raised by Google. OpenAI is under pressure to complete its for-profit transition within two years to avoid investor clawbacks. This transition may be influenced by market trends, like NotebookLM's redesign and Plus tier.