OpenAI's "Shipmas" Concludes Amidst Escalating Challenges and Rivalry with Elon Musk

OpenAI is done with Shipmas and staring down daunting challenges for 2025

OpenAI CEO Sam Altman, during an event in Seoul, South Korea, on June 9, 2023. SeongJoon Cho / Bloomberg via Getty Images file OpenAI's "12 Days of Shipmas," which wrapped up on Friday, brought a sense of levity to end the year. The marketing blitz served as a way for the high-profile and controversial AI startup to show it can release an extensive roster of new features and tools while also having some fun. But when the calendar turns, the company faces some serious challenges. Most notably, there's co-founder Elon Musk, who now runs rival startup xAI, and is in the midst of a heated legal battle with OpenAI CEO Sam Altman that could have a big impact on the company's future. The threat Musk poses to OpenAI is even more significant considering the hefty amount of influence the world's richest person is poised to assume as part of the incoming Trump administration. In recent months, Musk has sued Microsoft-backed OpenAI and asked a court to stop the company from converting to a for-profit corporation from a nonprofit. In posts on X, he described that effort as a "total scam" and claimed that "OpenAI is evil." At The New York Times' DealBook Summit earlier this month, Altman said he views xAI as a "fierce competitor." The pressure on OpenAI is tied in large part to its $157 billion valuation, achieved in the two years since the company launched its viral chatbot, ChatGPT, and kicked off the boom in generative AI. OpenAI closed its latest $6.6 billion round in October, gearing up to aggressively compete with xAI as well as Microsoft, Google, Amazon and Anthropic in a market that's predicted to top $1 trillion in revenue within a decade. Alongside the drama swirling around OpenAI and Altman, the Shipmas shtick served as a way for the company to shift the focus to its technology and generate buzz for its products. The most significant release over the 12 days was the public launch of Sora, OpenAI's much-hyped video-generation tool, on Dec. 9. Using Sora, which OpenAI first announced in February, is relatively simple: A user types out a desired scene, and the engine will return a high-definition video clip. Sora can also create clips inspired by still images and extend existing videos or fill in missing frames. While other AI video tools are available, Sora has been by far the most anticipated because of the power of OpenAI's large language models. On Wednesday, OpenAI gave users a new way to talk to its viral chatbot: 1-800-CHATGPT. Those in the U.S. can dial the number (1-800-242-8478) for 15 minutes free per month, OpenAI said, and WhatsApp users globally can message the chatbot at the same number. Other announcements included the full release of OpenAI's new o1 AI model focused on reasoning, a demo of video and screen-sharing options in ChatGPT's Advanced Voice Mode, the ability to organize work into "Projects" within ChatGPT, a wider rollout of ChatGPT Search and new developer tools. The company also used the marketing push to talk about its integration with Apple for the iPhone, iPad and macOS. OpenAI closed out its 12-day run of releases on Friday by announcing its newest frontier model, o3, as well as o3 mini. On a livestream, Altman said the company would not publicly launch the models Friday but would make them immediately available for public safety testing. The company launched o1 in September, and in skipping straight to o3, Altman said he's continuing "the grand tradition of OpenAI being really, truly bad at names." The campaign was celebrated in some corners for the company's ability to make a strong year-end push, and criticized by others as significantly more hype than substance. Either way, OpenAI is well aware that competition is heating up -- and quickly. One of its chief rivals, Amazon-backed Anthropic, was founded by early OpenAI researchers and has been attracting top talent. In May, OpenAI safety leader Jan Leike left OpenAI for Anthropic, and in August, OpenAI co-founder John Schulman announced he was leaving to join the rival startup. They were part of a wave of departures that culminated in September, when three top leaders, most notably technology chief Mira Murati, announced their exits on the same day. A recent report by Anthropic investor Menlo Ventures found that OpenAI ceded market share this year in enterprise AI, declining from 50% to 34%, while Anthropic doubled its market share from 12% to 24%. The results came from a survey of 600 enterprise IT decision-makers from companies with 50 or more employees, according to the report. One key area where the two companies appear poised to go head-to-head is in defense, as AI companies walk back earlier bans on military use of their products and enter into partnerships with big players in the industry and the U.S. Department of Defense. The day before OpenAI's Shipmas event began, the company announced a partnership with Anduril, allowing the defense tech provider to deploy advanced AI systems for "national security missions." Last month, Anthropic and defense software vendor Palantir announced a partnership with Amazon Web Services to "provide U.S. intelligence and defense agencies access" to Anthropic's AI systems. The primary battle, though, is still for users. Altman said publicly earlier this month that OpenAI now has 300 million weekly active users. Over the next year, the company is reportedly targeting 1 billion. That level of growth will likely require a pricey marketing push and fast-tracked feature launches, as the company advances in its two-year timeline for transitioning from a nonprofit into a fully for-profit company. Earlier this month, OpenAI announced it had hired its first chief marketing officer, nabbing Kate Rouch from crypto company Coinbase. Then there's the increasingly complicated relationship with Microsoft, OpenAI's lead investor and key cloud provider. While both companies continue to tout the value of their close partnership, there are increasing signs of tension. Following Altman's abrupt but short-lived ouster from OpenAI late last year, reports surfaced that Microsoft CEO Satya Nadella was not briefed beforehand. After Altman was quickly reinstated, OpenAI gave Microsoft a non-voting board seat. Microsoft relinquished the position in July. In March, Nadella brought on Mustafa Suleyman, who had co-founded AI research company DeepMind and sold it to Google in 2014. Suleyman, later co-founded and led startup Inflection AI, and was effectively acquihired by Microsoft. In its annual report published in July, Microsoft named OpenAI as a competitor, adding the company to a roster that for years has included megacap peers Amazon, Apple, Google and Meta. And in October, OpenAI debuted a search feature within ChatGPT that positions it to better compete with search engines like Google and Microsoft's Bing. But the thorniest issue heading into the new year likely involves Musk, who has been a fixture at President-elect Donald Trump's Mar-a-Lago resort in Florida since the election. Trump has said in the past that he would repeal President Joe Biden's AI executive order, issued in October 2023, which introduced new safety assessments, equity and civil rights guidance and research on AI's impact on the labor market. Musk is set to to lead the Trump administration's Department of Government Efficiency (DOGE), which is expected to function as an advisory office, alongside onetime Republican presidential candidate Vivek Ramaswamy. His new role could give Musk, who also runs Tesla and SpaceX and owns social media company X, influence over federal agencies' budgets, staffing and regulations in ways that favor his companies. "Starting to feel like The @DOGE has real potential," Musk posted on X last month. OpenAI did not provide a comment for the story, and Musk didn't respond to a request for comment.

OpenAI is done with Shipmas and staring down daunting challenges for 2025

Sam Altman Co-founder and CEO of OpenAI speaks during the Italian Tech Week 2024 at OGR Officine Grandi Riparazioni on September 25, 2024 in Turin, Italy. OpenAI's "12 Days of Shipmas," which wrapped up on Friday, brought a sense of levity to end the year. The marketing blitz served as a way for the high-profile and controversial AI startup to show it can release an extensive roster of new features and tools while also having some fun. But when the calendar turns, the company faces some serious challenges. Most notably, there's co-founder Elon Musk, who now runs rival startup xAI, and is in the midst of a heated legal battle with OpenAI CEO Sam Altman that could have a big impact on the company's future. The threat Musk poses to OpenAI is even more significant considering the hefty amount of influence the world's richest person is poised to assume as part of the incoming Trump administration. In recent months, Musk has sued Microsoft-backed OpenAI and asked a court to stop the company from converting to a for-profit corporation from a nonprofit. In posts on X, he described that effort as a "total scam" and claimed that "OpenAI is evil." At The New York Times' DealBook Summit earlier this month, Altman said he views xAI as a "fierce competitor." The pressure on OpenAI is tied in large part to its $157 billion valuation, achieved in the two years since the company launched its viral chatbot, ChatGPT, and kicked off the boom in generative AI. OpenAI closed its latest $6.6 billion round in October, gearing up to aggressively compete with xAI as well as Microsoft, Google, Amazon and Anthropic in a market that's predicted to top $1 trillion in revenue within a decade. Alongside the drama swirling around OpenAI and Altman, the Shipmas shtick served as a way for the company to shift the focus to its technology and generate buzz for its products. The most significant release over the 12 days was the public launch of Sora, OpenAI's much-hyped video-generation tool, on Dec. 9.

OpenAI's legal battle with Elon Musk reveals internal turmoil over avoiding AI 'dictatorship'

A 7-year-old dispute between tech leaders Elon Musk and Sam Altman over who should run OpenAI and prevent an artificial intelligence "dictatorship" is now heading to a federal judge as Musk seeks to halt the ChatGPT maker's ongoing shift into a for-profit company. Musk, an early OpenAI investor and board member, sued the artificial intelligence company earlier this year alleging it had betrayed its founding aims as a nonprofit research lab benefiting the public good rather than pursuing profits. Musk has since escalated the dispute, adding new claims and asking for a court order that would stop OpenAI's plans to convert itself into a for-profit business more fully. The world's richest man, whose companies include Tesla, SpaceX and social media platform X, last year started his own rival AI company, xAI. Musk says it faces unfair competition from OpenAI and its close business partner Microsoft, which has supplied the huge computing resources needed to build AI systems such as ChatGPT. "OpenAI and Microsoft together exploiting Musk's donations so they can build a for-profit monopoly, one now specifically targeting xAI, is just too much," says Musk's filing that alleges the companies are violating the terms of Musk's foundational contributions to the charity. OpenAI is filing a response Friday opposing Musk's requested order, saying it would cripple OpenAI's business and mission to the advantage of Musk and his own AI company. A hearing is set for January before U.S. District Judge Yvonne Gonzalez Rogers in Oakland. At the heart of the dispute is a 2017 internal power struggle at the fledgling startup that led to Altman becoming OpenAI's CEO. Musk also wanted the job, according to emails revealed as part of the court case, but grew frustrated after two other OpenAI co-founders said he would hold too much power as a major shareholder and chief executive if the startup succeeded in its goal to achieve better-than-human AI known as artificial general intelligence, or AGI. Musk has long voiced concerns about how advanced forms of AI could threaten humanity. "The current structure provides you with a path where you end up with unilateral absolute control over the AGI," said a 2017 email to Musk from co-founders Ilya Sutskever and Greg Brockman. "You stated that you don't want to control the final AGI, but during this negotiation, you've shown to us that absolute control is extremely important to you." In the same email, titled "Honest Thoughts," Sutskever and Brockman also voiced concerns about Altman's desire to be CEO and whether he was motivated by "political goals." Altman eventually succeeded in becoming CEO, and has remained so except for a period last year when he was fired and then reinstated days later after the board that ousted him was replaced. OpenAI published the messages Friday in a blog post meant to show its side of the story, particularly Musk's early support for the idea of making OpenAI a for-profit business so it could raise money for the hardware and computer power that AI needs. It was Musk, through his wealth manager Jared Birchall, who first registered "Open Artificial Technologies Technologies, Inc.", a public benefit corporation, in September 2017. Then came the "Honest Thoughts" email that Musk described as the "final straw." "Either go do something on your own or continue with OpenAI as a nonprofit," Musk wrote back. Musk didn't immediately respond to emailed requests for comment sent to his companies Friday. Asked about his frayed relationship with Musk at a New York Times conference last week, Altman said he felt "tremendously sad" but also characterized Musk's legal fight as one about business competition. "He's a competitor and we're doing well," Altman said. He also said at the conference that he is "not that worried" about the Tesla CEO's influence with President-elect Donald Trump. OpenAI said Friday that Altman plans to make a $1 million personal donation to Trump's inauguration fund, joining a number of tech companies and executives who are working to improve their relationships with the incoming administration. -- -- -- -- -- -- -- -- -- -- The Associated Press and OpenAI have a licensing and technology agreement allowing OpenAI access to part of the AP's text archives.

OpenAI's legal battle with Elon Musk reveals internal turmoil over avoiding AI 'dictatorship'

A 7-year-old dispute between tech leaders Elon Musk and Sam Altman over who should run OpenAI and best avoid an artificial intelligence 'dictatorship' is now heading to a federal judge as Musk seeks to halt the ChatGPT maker's ongoing conversion into a... A 7-year-old dispute between tech leaders Elon Musk and Sam Altman over who should run OpenAI and prevent an artificial intelligence "dictatorship" is now heading to a federal judge as Musk seeks to halt the ChatGPT maker's ongoing shift into a for-profit company. Musk, an early OpenAI investor and board member, sued the artificial intelligence company earlier this year alleging it had betrayed its founding aims as a nonprofit research lab benefiting the public good rather than pursuing profits. Musk has since escalated the dispute, adding new claims and asking for a court order that would stop OpenAI's plans to convert itself into a for-profit business more fully. The world's richest man, whose companies include Tesla, SpaceX and social media platform X, last year started his own rival AI company, xAI. Musk says it faces unfair competition from OpenAI and its close business partner Microsoft, which has supplied the huge computing resources needed to build AI systems such as ChatGPT. "OpenAI and Microsoft together exploiting Musk's donations so they can build a for-profit monopoly, one now specifically targeting xAI, is just too much," says Musk's filing that alleges the companies are violating the terms of Musk's foundational contributions to the charity. OpenAI is filing a response Friday opposing Musk's requested order, saying it would cripple OpenAI's business and mission to the advantage of Musk and his own AI company. A hearing is set for January before U.S. District Judge Yvonne Gonzalez Rogers in Oakland. At the heart of the dispute is a 2017 internal power struggle at the fledgling startup that led to Altman becoming OpenAI's CEO. Musk also wanted the job, according to emails revealed as part of the court case, but grew frustrated after two other OpenAI co-founders said he would hold too much power as a major shareholder and chief executive if the startup succeeded in its goal to achieve better-than-human AI known as artificial general intelligence, or AGI. Musk has long voiced concerns about how advanced forms of AI could threaten humanity. "The current structure provides you with a path where you end up with unilateral absolute control over the AGI," said a 2017 email to Musk from co-founders Ilya Sutskever and Greg Brockman. "You stated that you don't want to control the final AGI, but during this negotiation, you've shown to us that absolute control is extremely important to you." In the same email, titled "Honest Thoughts," Sutskever and Brockman also voiced concerns about Altman's desire to be CEO and whether he was motivated by "political goals." Altman eventually succeeded in becoming CEO, and has remained so except for a period last year when he was fired and then reinstated days later after the board that ousted him was replaced. OpenAI published the messages Friday in a blog post meant to show its side of the story, particularly Musk's early support for the idea of making OpenAI a for-profit business so it could raise money for the hardware and computer power that AI needs. It was Musk, through his wealth manager Jared Birchall, who first registered "Open Artificial Technologies Technologies, Inc.", a public benefit corporation, in September 2017. Then came the "Honest Thoughts" email that Musk described as the "final straw." "Either go do something on your own or continue with OpenAI as a nonprofit," Musk wrote back. Musk didn't immediately respond to emailed requests for comment sent to his companies Friday. Asked about his frayed relationship with Musk at a New York Times conference last week, Altman said he felt "tremendously sad" but also characterized Musk's legal fight as one about business competition. "He's a competitor and we're doing well," Altman said. He also said at the conference that he is "not that worried" about the Tesla CEO's influence with President-elect Donald Trump. OpenAI said Friday that Altman plans to make a $1 million personal donation to Trump's inauguration fund, joining a number of tech companies and executives who are working to improve their relationships with the incoming administration. -- -- -- -- -- -- -- -- -- -- The Associated Press and OpenAI have a licensing and technology agreement allowing OpenAI access to part of the AP's text archives.

Elon Musk vs Sam Altman: The AI Rivalry Shaping Our Future

Elon Musk and Sam Altman, once collaborators in the creation of OpenAI, now find themselves at the forefront of a growing rivalry that is transforming the artificial intelligence (AI) landscape. Their public disagreements highlight critical issues, including the balance between transparency and competition, the ethical challenges of AI development, and the tension between profit-driven goals and altruistic intentions. This rivalry, marked by accusations, strategic moves, and legal disputes, underscores the broader challenges the AI industry faces as it navigates rapid advancements and societal expectations. What began as a shared vision for advancing AI has evolved into a public and deeply personal competition between Musk and Altman. Their conflict encapsulates a larger conversation about transparency, ethics, and the delicate balance between innovation and responsibility in a fast-moving industry. This story sheds light on how ideals often clash with the profit-driven realities of the modern tech world. More than just a tale of competing personalities, this rivalry reflects the growing pains of an industry shaping the future of humanity. As Musk and Altman take bold steps to outpace one another, they force critical questions into the spotlight: Can AI development remain true to its original altruistic principles? And what happens when the drive for dominance in AI overshadows collaboration? While the answers remain complex, the implications of this competition could not be more significant. Their conflict is not merely personal but emblematic of the larger debates surrounding AI's future. As two of the most influential figures in technology, Musk and Altman's actions and decisions are shaping the trajectory of AI innovation, raising questions about how to ensure that these powerful technologies benefit humanity as a whole. OpenAI was founded with a bold mission: to ensure that artificial intelligence serves the greater good of humanity. Initially structured as a nonprofit organization, it embraced open source principles to counterbalance the dominance of major tech corporations like Google. However, OpenAI's transition to a for-profit model has sparked significant controversy, with critics arguing that this shift undermines its founding ideals. Elon Musk, a co-founder of OpenAI, has been one of the most vocal critics of this transformation. He has accused the organization of abandoning its commitment to transparency and prioritizing financial gain over ethical considerations. OpenAI's close partnership with Microsoft, which has invested billions into the organization, has further fueled these concerns. Critics argue that this relationship compromises OpenAI's independence and raises questions about whether its decisions are driven by profit motives rather than its original mission. The shift has become a focal point in the broader debate over the role of ethics in AI development. It highlights the challenges organizations face in balancing the need for resources with the imperative to maintain public trust and uphold their stated values. The personal and professional rift between Elon Musk and Sam Altman has become a defining narrative in the AI industry. Musk has publicly criticized Altman, accusing him of steering OpenAI away from its original mission and prioritizing personal and organizational gain. Altman, in response, has defended his leadership, asserting that OpenAI's transition was necessary to secure the resources required to remain competitive in the rapidly evolving AI landscape. This feud has played out in public forums, with Musk making pointed remarks about Altman's leadership style and even comparing him to a manipulative character from *Game of Thrones*. Altman, for his part, has emphasized the challenges of leading an organization in an industry where innovation moves at breakneck speed and decisions have far-reaching implications. The conflict between Musk and Altman underscores a broader tension in the AI sector: how to balance the drive for rapid technological progress with the need for ethical responsibility. It also highlights the complexities of leadership in an industry where the stakes are extraordinarily high, both in terms of societal impact and competitive pressures. Browse through more resources below from our in-depth content covering more areas on OpenAI : Elon Musk has not limited his opposition to public criticism. He has taken legal action to challenge OpenAI's transition to a for-profit model, alleging that the organization has engaged in anti-competitive practices. Musk has also accused OpenAI of granting Microsoft unfair access to sensitive information, which he claims gives the company a significant competitive advantage. At the same time, Musk has launched his own AI initiative, xAI, which directly competes with OpenAI. By securing substantial resources, including a large supply of Nvidia GPUs, Musk aims to develop advanced AI technologies that could rival or surpass OpenAI's capabilities. This move has intensified competition within the AI sector, pushing both organizations to innovate at an accelerated pace. The rivalry between Musk and Altman has significant implications for the industry. It is driving advancements in AI technology but also raising concerns about the potential consequences of unchecked competition. As both leaders pursue their visions, the industry must grapple with questions about fairness, transparency, and the broader societal impact of their innovations. Sam Altman has remained steadfast in defending OpenAI's evolution, arguing that the shift to a for-profit model was essential to secure the funding and resources needed to achieve its ambitious goals. He has emphasized that the organization remains committed to its mission of making sure that AI benefits humanity, even as it navigates the complexities of a competitive market. However, Altman faces significant challenges. OpenAI has struggled with resource limitations, particularly in acquiring Nvidia chips, which are critical for training advanced AI models. In contrast, Musk's xAI has reportedly secured a larger supply of these chips, giving it a potential edge in the race to develop innovative AI technologies. Altman's leadership is under intense scrutiny as he works to address these challenges while maintaining transparency and trust. The demands of leading an organization at the forefront of AI innovation are immense, and Altman's ability to navigate these pressures will play a crucial role in shaping OpenAI's future. The rivalry between Elon Musk and Sam Altman extends beyond their personal disagreements, shedding light on critical issues that will shape the future of artificial intelligence. As competition intensifies, questions arise about the role of profit motives in driving innovation and whether organizations can balance financial interests with the altruistic goal of creating AI that benefits humanity. This conflict highlights the complexities of leadership, trust, and innovation in an industry with fantastic potential. It raises important questions about how to ensure that AI development aligns with ethical principles and societal needs, rather than being driven solely by competitive pressures or financial incentives. The outcome of this rivalry will likely have far-reaching implications, influencing not only the pace of technological advancements but also the ethical frameworks that guide the development and deployment of AI. As Musk and Altman continue to shape the industry, their decisions will play a pivotal role in determining the trajectory of artificial intelligence and its impact on society.

OpenAI's Legal Battle With Elon Musk Reveals Internal Turmoil Over Avoiding AI 'Dictatorship'

A 7-year-old dispute between tech leaders Elon Musk and Sam Altman over who should run OpenAI and prevent an artificial intelligence "dictatorship" is now heading to a federal judge as Musk seeks to halt the ChatGPT maker's ongoing shift into a for-profit company. Musk, an early OpenAI investor and board member, sued the artificial intelligence company earlier this year alleging it had betrayed its founding aims as a nonprofit research lab benefiting the public good rather than pursuing profits. Musk has since escalated the dispute, adding new claims and asking for a court order that would stop OpenAI's plans to convert itself into a for-profit business more fully. The world's richest man, whose companies include Tesla, SpaceX and social media platform X, last year started his own rival AI company, xAI. Musk says it faces unfair competition from OpenAI and its close business partner Microsoft, which has supplied the huge computing resources needed to build AI systems such as ChatGPT. "OpenAI and Microsoft together exploiting Musk's donations so they can build a for-profit monopoly, one now specifically targeting xAI, is just too much," says Musk's filing that alleges the companies are violating the terms of Musk's foundational contributions to the charity. OpenAI is filing a response Friday opposing Musk's requested order, saying it would cripple OpenAI's business and mission to the advantage of Musk and his own AI company. A hearing is set for January before U.S. District Judge Yvonne Gonzalez Rogers in Oakland. At the heart of the dispute is a 2017 internal power struggle at the fledgling startup that led to Altman becoming OpenAI's CEO. Musk also wanted the job, according to emails revealed as part of the court case, but grew frustrated after two other OpenAI co-founders said he would hold too much power as a major shareholder and chief executive if the startup succeeded in its goal to achieve better-than-human AI known as artificial general intelligence, or AGI. Musk has long voiced concerns about how advanced forms of AI could threaten humanity. "The current structure provides you with a path where you end up with unilateral absolute control over the AGI," said a 2017 email to Musk from co-founders Ilya Sutskever and Greg Brockman. "You stated that you don't want to control the final AGI, but during this negotiation, you've shown to us that absolute control is extremely important to you." In the same email, titled "Honest Thoughts," Sutskever and Brockman also voiced concerns about Altman's desire to be CEO and whether he was motivated by "political goals." Altman eventually succeeded in becoming CEO, and has remained so except for a period last year when he was fired and then reinstated days later after the board that ousted him was replaced. OpenAI published the messages Friday in a blog post meant to show its side of the story, particularly Musk's early support for the idea of making OpenAI a for-profit business so it could raise money for the hardware and computer power that AI needs. It was Musk, through his wealth manager Jared Birchall, who first registered "Open Artificial Technologies Technologies, Inc.", a public benefit corporation, in September 2017. Then came the "Honest Thoughts" email that Musk described as the "final straw." "Either go do something on your own or continue with OpenAI as a nonprofit," Musk wrote back. Musk didn't immediately respond to emailed requests for comment sent to his companies Friday. Asked about his frayed relationship with Musk at a New York Times conference last week, Altman said he felt "tremendously sad" but also characterized Musk's legal fight as one about business competition. "He's a competitor and we're doing well," Altman said. He also said at the conference that he is "not that worried" about the Tesla CEO's influence with President-elect Donald Trump. OpenAI said Friday that Altman plans to make a $1 million personal donation to Trump's inauguration fund, joining a number of tech companies and executives who are working to improve their relationships with the incoming administration. -- -- -- -- -- -- -- -- -- -- The Associated Press and OpenAI have a licensing and technology agreement allowing OpenAI access to part of the AP's text archives. Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

OpenAI's legal battle with Elon Musk reveals internal turmoil

AP - A seven-year-old rivalry between tech leaders Elon Musk and Sam Altman over who should run OpenAI and prevent an artificial intelligence (AI) "dictatorship" is now heading to a federal judge as Musk seeks to halt the ChatGPT maker's ongoing shift into a for-profit company. Musk, an early OpenAI investor and board member, sued the AI company earlier this year alleging it had betrayed its founding aims as a non-profit research lab benefiting the public good rather than pursuing profits. Musk has since escalated the dispute, adding new claims and asking for a court order that would stop OpenAI's plans to convert itself into a for-profit business more fully. The world's richest man, whose companies include Tesla, SpaceX and social media platform X, last year started his own rival AI company, xAI. Musk says it faces unfair competition from OpenAI and its close business partner Microsoft, which has supplied the huge computing resources needed to build AI systems such as ChatGPT. "OpenAI and Microsoft together exploiting Musk's donations so they can build a for-profit monopoly, one now specifically targeting xAI, is just too much," said Musk's filing that alleges the companies are violating the terms of Musk's foundational contributions to the charity. OpenAI filed a response on Friday opposing Musk's requested order, saying it would "debilitate OpenAI's business" and mission to the advantage of Musk and his own AI company and is based on "far-fetched" legal claims. A hearing is set for January before United States District Judge Yvonne Gonzalez Rogers in Oakland, California. At the heart of the dispute is a 2017 internal power struggle at the fledgling startup that led to Altman becoming OpenAI's chief executive officer (CEO). Musk also sought to be CEO and in an email outlined a plan where he would "unequivocally have initial control of the company" but said that would be temporary. He grew frustrated after two other OpenAI co-founders said he would hold too much power as a major shareholder and chief executive if the startup succeeded in its goal to achieve better-than-human AI known as artificial general intelligence, or AGI. Musk has long voiced concerns about how advanced forms of AI could threaten humanity. "The current structure provides you with a path where you end up with unilateral absolute control over the AGI," said a 2017 email to Musk from co-founders Ilya Sutskever and Greg Brockman. "You stated that you don't want to control the final AGI, but during this negotiation, you've shown to us that absolute control is extremely important to you." In the same email, titled 'Honest Thoughts', Sutskever and Brockman also voiced concerns about Altman's desire to be CEO and whether he was motivated by "political goals." Altman eventually succeeded in becoming CEO, and has remained so except for a period last year when he was fired and then reinstated days later after the board that ousted him was replaced. OpenAI published the messages in a blog post meant to show its side of the story, particularly Musk's early support for the idea of making OpenAI a for-profit business so it could raise money for the hardware and computer power that AI needs. It was Musk, through his wealth manager Jared Birchall, who first registered "Open Artificial Intelligence Technologies Inc", a public benefit corporation, in September 2017. Then came the 'Honest Thoughts' email that Musk described as the "final straw". "Either go do something on your own or continue with OpenAI as a non-profit," Musk wrote back. OpenAI said Musk later proposed merging the startup into Tesla before resigning as the co-chair of OpenAI's board in early 2018. Musk didn't respond to emailed requests for comment sent to his companies. Asked about his frayed relationship with Musk at a New York Times conference last week, Altman said he felt "tremendously sad" but also characterised Musk's legal fight as one about business competition. "He's a competitor and we're doing well," Altman said. He also said at the conference that he is "not that worried" about the Tesla CEO's influence with President-elect Donald Trump. OpenAI said on Friday that Altman plans to make a USD1 million personal donation to Trump's inauguration fund, joining a number of tech companies and executives who are working to improve their relationships with the incoming administration.

OpenAI's 'Elon'gated Saga Has a New Twist | AI Origins & Evolution

Amid court battle, emails reveal Musk wanted 'for-profit' model for OpenAI. On Friday, OpenAI released a series of internal emails, text messages, and legal filings, indicating that Elon Musk's injunction to prevent OpenAI from turning into a 'for-profit' company was contrary to his vision in 2017. Musk, CEO of Tesla and SpaceX, was an early investor in OpenAI. In March 2024, he initiated legal proceedings against the company, alleging they never intended to go 'for profit'. The documents and email exchanges between co-founders Sam Altman, Ilya Sutskever, Greg Brockman, and Elon Musk regarding the operational structure of the company show that Musk 'wanted an OpenAI 'for-profit' model. OpenAI said that in the summer of 2017, "We and Elon agreed that a for-profit was the next step for OpenAI to advance the mission." The company further said that Musk had demanded majority equity, absolute control, and be CEO of the for-profit initiative. OpenAI rose to prominence with ChatGPT and other innovative products, forcing the tech world to be on edge in the fast-changing AI world. The company began as a non-profit in 2015. By 2019, it adopted a "capped-profit" model to attract investment, allowing investors to earn returns up to a set limit, with any surplus directed back to the non-profit. By 2024, OpenAI proposed restructuring into a public benefit corporation to secure more substantial funding for its AI research and development. A few months ago, OpenAI raised $6.6 billion in funds, led by Thrive Captial, NVIDIA, Microsoft and Softbank Group. While the intent of releasing these documents is not clear, the timing, however, begs the question, as a preliminary court hearing between Musk and OpenAI is scheduled early next year, on January 14, 2025. Revealing the timeline of events since its inception in 2015, these documents, however, suggest that Musk was advocating for a financially efficient structure compared to a non-profit model. While OpenAI mentioned that they came close to accepting Musk's terms, they later felt he did not align with the company's mission. OpenAI told Musk, "The goal of OpenAI is to make the future good and to avoid an AGI dictatorship." Not just Musk, OpenAI has been facing attacks from all sides. Tech giant Alphabet, which owns Google, OpenAI's competitor, asked the Federal Trade Commission (FTC) to purge Microsoft's partnership with OpenAI. The report suggests that companies that buy OpenAI's technology may have to pay an additional cost if they do not use Microsoft's servers to run it. While Musk withdrew his case in June 2024, he renewed it again in August. In November, he expanded the lawsuit by including Microsoft. He claimed they were engaging in anti-competitive and monopolistic practices in the AI ecosystem. "You can't sue your way to AGI. We have great respect for Elon's accomplishments and gratitude for his early contributions to OpenAI, but he should be competing in the marketplace rather than the courtroom," said OpenAI. At present, while Altman has no stake in the company, reports suggest that he might receive some when the company completes the 'for profit' transition. Another report suggests that Meta is insisting California's attorney general block OpenAI's conversion to a for-profit company -- jumping on board Elon Musk's team. Meta has shared a letter to Attorney General Rob Bonta to review OpenAI's transition from a non-profit entity to a profitable one. "[Meta] is deeply concerned about OpenAI's attempt to shed the non-profit status under which it was founded in order to establish a for-profit entity. They also mentioned that failing to hold OpenAI accountable for its choice 'could lead to a proliferation of similar start-up ventures'. Are big tech companies facing the heat from Musk? Do note that Musk has been a significant supporter, both vocally and financially, of Donald Trump, who is set to take over as the new president of the United States. He, along with Vivek Ramaswamy, has been appointed as the head of the 'Department of Government Efficiency'. At the recent New York Times DealBook Summit interview, Altman said that it would be 'profoundly un-American' for Musk to use his political influence to hurt competitors or get an advantage for his interests.

​​OpenAI spills tea on Musk as Meta seeks block on for-profit dreams

OpenAI has been on a "Shipmas" product launch spree, launching its highly-awaited Sora video generator and onboarding millions of Apple ecosystem members with the Siri-ChatGPT integration. The company has also expanded its subscription portfolio as it races towards a for-profit status, which is reportedly a hot topic of debate internally. Not everyone is happy with the AI behemoth abandoning its non-profit roots, including one of its founding fathers and now rival, Elon Musk. The xAI chief filed a lawsuit against OpenAI earlier this year and has also been consistently taking potshots at the company "You can't sue your way to AGI." Recommended Videos Now, the Microsoft-backed company has published a trove of emails and conversations between Musk and OpenAI executives, with quite a stunning claim. It was Musk, all along, who was allegedly chasing a for-profit status and sought the CEO role, absolute control, a merger with Tesla, and a majority equity. A few core OpenAI executives were also enthusiastic about a hybrid plan where a research division would function as a non-profit, alongside a for-profit wing exploring hardware partnerships. As the involved parties explored a for-profit arm, Musk wrote to the top OpenAI executives that he "would unequivocally have initial control of the company," subject to change in the near future. OpenAI rejected Musk's demands and he eventually left, subsequently starting his own company called xAI. "He should be competing in the marketplace rather than the courtroom." "The current structure provides you with a path where you end up with unilateral absolute control over the AGI," former OpenAI chief scientist Ilya Sutskever wrote to Musk in an email chain. "You stated that you don't want to control the final AGI, but during this negotiation, you've shown to us that absolute control is extremely important to you" OpenAI eventually established the capped-profit OpenAI LP entity and claims to have reached out to Musk on multiple occasions with an equity offering, but he declined. But it seems that Musk is not the only party unhappy with OpenAI inching toward a for-profit structure. Meta is miffed Meta has reportedly written a letter to California Attorney General, Rob Bonta, asking for a block on OpenAI's pursuit of transforming into a non-profit company. The letter, which was first reported by The Wall Street Journal, notes that OpenAI initially gathered funding as it promoted a charitable mission and now wants to amass profits. The Mark Zuckerberg-led company has asked the attorney general to not only stop OpenAI's transformation, but also urgently look into its obligations as a non-profit in the context of activities like "distributing assets to third-party entities." "That is wrong." Meta's core argument is that OpenAI sets a dangerous precedent where a non-profit gets a fat sum in donations, builds a product or service, and then abandons its charitable roots to seek profits down the road. Of course, the social giant is also competing against OpenAI with its own Meta AI stack, so there's that. Interestingly, Meta's letter namedrops Musk, noting that he is "qualified and well positioned to represent the interests of Californians in this matter." Notably, Musk hasn't been a fan of Zuckerberg lately, and until a few months ago, the two were butting heads and goading each other in a cage fight. The fight never happened. It would be interesting to see whether OpenAI faces any legal heat in its for-profit while working closely with Microsoft.

OpenAI Fires Back at Elon Musk's Lawsuit

Earlier this month, Elon Musk asked a federal court to block OpenAI's efforts to transform itself from a nonprofit into a purely for-profit company. On Friday, OpenAI responded with its own legal filing, arguing that Mr. Musk is merely trying to hamstring OpenAI as he builds a rival company called xAI. What Mr. Musk is asking for would "debilitate OpenAI's business, board deliberations, and mission to create safe and beneficial A.I. -- all to the advantage of Musk and his own A.I. company," the filing said. "The motion should be denied." OpenAI also disputed many of the claims made by Mr. Musk in the lawsuit he brought against OpenAI earlier this year. In a blog post published before Friday's filing, OpenAI portrayed Mr. Musk as a hypocrite, saying that he had tried to transform the lab from a nonprofit into a for-profit operation before he left the organization six years ago. The filing and blog post included documents claiming to show that in 2017, Jared Birchall, the head of Mr. Musk's family office, registered a company called "Open Artificial Intelligence Technologies, Inc." that was meant to be a for-profit incarnation of OpenAI. "His own words and actions speak for themselves," the company said. "Elon not only wanted, but actually created, a for-profit as OpenAI's proposed new structure." Mr. Musk and Mr. Birchall did not respond to a request for comment. Mr. Musk sued OpenAI in March in a state court in San Francisco, before withdrawing the suit without explanation. Seven weeks later, he filed a new suit in federal court. Like the original suit, the federal complaint claimed that OpenAI and two of its founders, Sam Altman and Greg Brockman, breached the company's founding contract by putting commercial interests ahead of the public good. Mr. Musk has since added new claims to the suit and filed a motion for a preliminary injunction against OpenAI to prevent it from transforming itself into a for-profit. After joining with Mr. Musk to create OpenAI in 2015 and pledging to carefully develop artificial intelligence for the benefit of humanity, the suit claimed, Mr. Altman and Mr. Brockman abandoned this mission by entering into its multibillion-dollar partnership with Microsoft. OpenAI is now trying to restructure itself so that the nonprofit no longer controls its operations. Mr. Musk's suit aims to block the move. OpenAI on Friday argued that Mr. Musk also pushed for a corporate structure and equity compensation that would personally enrich him. In text messages from September 2017 exchanged with Mr. Brockman, included in its blog post, Shivon Zilis, an early OpenAI board member and liaison to Mr. Musk, wrote that Mr. Musk expected to have 50 percent to 60 percent of the equity in the new company. Ms. Zilis did not respond to a request for comment. OpenAI also claimed in its blog post that during a call at the time, Mr. Musk told the company's executives that he needed the stake in any for-profit entity to help him accumulate $80 billion so he could build a city on Mars. Mr. Musk stepped away from OpenAI in early 2018, before the Microsoft partnership was created. In November, he amended his federal lawsuit to add Microsoft as a defendant and Ms. Zilis, who is now the mother of at least three children with Mr. Musk, as a plaintiff. Earlier this month, at The New York Times' DealBook Summit, Mr. Altman said he was "tremendously sad" about his feud with Mr. Musk. Now that Mr. Musk is set to lead an advisory group for the Trump administration, some people question whether Mr. Musk will use that influence against OpenAI. But Mr. Altman rejected the idea that his former collaborator would use his political power against him. "I believe pretty strongly that Elon will do the right thing and that it would be profoundly un-American to use political power to the degree that Elon would hurt competitors and advantage his own businesses," Mr. Altman said. On Friday, Mr. Altman said he would be donating $1 million to President-elect Donald J. Trump's inaugural fund. "President Trump will lead our country into the age of A.I., and I am eager to support his efforts to ensure America stays ahead," Mr. Altman said in a statement. (The Times sued OpenAI and Microsoft in December 2023 for copyright infringement of news content related to A.I. systems. The companies deny the claims.)

OpenAI fires back at Elon Musk's lawsuit

In a blog post published before Friday's filing, OpenAI portrayed Musk as a hypocrite, saying that he had tried to transform the lab from a nonprofit into a for-profit operation before he left the organization six years ago. The filing and blog post included documents claiming to show that in 2017, Jared Birchall, the head of Musk's family office, registered a company called "Open Artificial Intelligence Technologies, Inc." that was meant to be a for-profit incarnation of OpenAI.Earlier this month, Elon Musk asked a federal court to block OpenAI's efforts to transform itself from a nonprofit into a purely for-profit company. On Friday, OpenAI responded with its own legal filing, arguing that Musk is merely trying to hamstring OpenAI as he builds a rival company called xAI. What Musk is asking for would "debilitate OpenAI's business, board deliberations, and mission to create safe and beneficial A.I. -- all to the advantage of Musk and his own A.I. company," the filing said. "The motion should be denied." OpenAI also disputed many of the claims made by Musk in the lawsuit he brought against OpenAI earlier this year. In a blog post published before Friday's filing, OpenAI portrayed Musk as a hypocrite, saying that he had tried to transform the lab from a nonprofit into a for-profit operation before he left the organization six years ago. The filing and blog post included documents claiming to show that in 2017, Jared Birchall, the head of Musk's family office, registered a company called "Open Artificial Intelligence Technologies, Inc." that was meant to be a for-profit incarnation of OpenAI. "His own words and actions speak for themselves," the company said. "Elon not only wanted, but actually created, a for-profit as OpenAI's proposed new structure." Musk and Birchall did not respond to a request for comment. Musk sued OpenAI in March in a state court in San Francisco before withdrawing the suit without explanation. Seven weeks later, he filed a new suit in federal court. Like the original suit, the federal complaint claimed that OpenAI and two of its founders, Sam Altman and Greg Brockman, breached the company's founding contract by putting commercial interests ahead of the public good. Musk has since added new claims to the suit and filed a motion for a preliminary injunction against OpenAI to prevent it from transforming itself into a for-profit. After joining with Musk to create OpenAI in 2015 and pledging to carefully develop artificial intelligence for the benefit of humanity, the suit claimed, Altman and Brockman abandoned this mission by entering into its multibillion-dollar partnership with Microsoft. OpenAI is now trying to restructure itself so that the nonprofit no longer controls its operations. Musk's suit aims to block the move. OpenAI on Friday argued that Musk also pushed for a corporate structure and equity compensation that would personally enrich him. In text messages from September 2017 exchanged with Brockman, included in its blog post, Shivon Zilis, an early OpenAI board member and liaison to Musk, wrote that Musk expected to have 50% to 60% of the equity in the new company. Zilis did not respond to a request for comment. OpenAI also claimed in its blog post that during a call at the time, Musk told the company's executives that he needed the stake in any for-profit entity to help him accumulate $80 billion so he could build a city on Mars. Musk stepped away from OpenAI in early 2018, before the Microsoft partnership was created. In November, he amended his federal lawsuit to add Microsoft as a defendant and Zilis, who is now the mother of at least three children with Musk, as a plaintiff. Earlier this month, at The New York Times' DealBook Summit, Altman said he was "tremendously sad" about his feud with Musk. Now that Musk is set to lead an advisory group for the Trump administration, some people question whether Musk will use that influence against OpenAI. But Altman rejected the idea that his former collaborator would use his political power against him. "I believe pretty strongly that Elon will do the right thing and that it would be profoundly un-American to use political power to the degree that Elon would hurt competitors and advantage his own businesses," Altman said. On Friday, Altman said he would be donating $1 million to President-elect Donald Trump's inaugural fund. "President Trump will lead our country into the age of AI, and I am eager to support his efforts to ensure America stays ahead," Altman said in a statement. (The Times sued OpenAI and Microsoft in December 2023 for copyright infringement of news content related to AI systems. The companies deny the claims.)

OpenAI vs. Musk: How their legal battle aims to prevent an AI 'dictatorship'

The world's richest man, whose companies include Tesla, SpaceX and social media platform X, last year started his own rival AI company, xAI. Musk says it faces unfair competition from OpenAI and its close business partner Microsoft, which has supplied the huge computing resources needed to build AI systems such as ChatGPT. "OpenAI and Microsoft together exploiting Musk's donations so they can build a for-profit monopoly, one now specifically targeting xAI, is just too much," says Musk's filing that alleges the companies are violating the terms of Musk's foundational contributions to the charity. OpenAI filed a response Friday opposing Musk's requested order, saying it would "debilitate OpenAI's business" and mission to the advantage of Musk and his own AI company and is based on "far-fetched" legal claims. A hearing is set for January before U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California. At the heart of the dispute is a 2017 internal power struggle at the fledgling startup that led to Altman becoming OpenAI's CEO.

OpenAI claims Elon Musk 'demanded absolute control, and to be CEO' while also agreeing to ditch its non-profit status back in 2017, despite him now suing it for turning decidedly for-profit

It's not just a case of 'he said, she said': OpenAI has released DMs and emails about the whole thing. The complex history between OpenAI and Elon Musk, former co-chair of said AI company, has taken an unexpected turn. The creator of ChatGPT has published a series of messages and emails that suggest Musk wanted the company to abandon its non-profit roots and go full-sail for-profit, the very thing that he is now suing OpenAI for doing. We all know that AI involves billions of dollars. One can't build data centres full of thousands of massive GPUs, pay the energy bills, and hire staff to program them for a mere pittance. But should that expenditure be used to create something for non-profit making or to create something that will ultimately rake in huge sums of money? When it comes to OpenAI, creators of ChatGPT, and Elon Musk, owner of xAI and Grok, it would seem they've not seen eye-to-eye on this matter. OpenAI started as a non-profit AI research organisation in December 2015, before launching a for-profit subsidiary (OpenAI Global) four years later. The company was co-chaired by Sam Altman and Elon Musk until 2018 when Musk resigned from the board of directors, to avoid a conflict of interest with Tesla, which uses AI for its autonomous driving systems. Over the years, other staff left OpenAI to start up AI companies of their own, and OpenAI Global attracted the attention of Microsoft, which pumped billions of dollars into the subsidiary, securing a nearly 50% share of the company. Earlier this year, however, Elon Musk sued OpenAI and Sam Altman for breach of contract, violating fiduciary duty, and unfair business practices -- in short, because OpenAI had decided to target profits and commercial interests, over the company's original goal of pursuing AI for the good of mankind. Fast forward to a few days ago and it would seem that all is not quite as simple as it sounds, because OpenAI has published redacted DMs and emails that show Musk wanted OpenAI to go for-profit in the summer of 2017, before then going on to "demand majority equity, absolute control, and to be CEO of the for-profit." In one email supposedly from Musk, he wrote that "the Preferred A investment round (supermajority me) should have the right to appoint four (not three) seats. I would not expect to appoint them immediately, but, like I said I would unequivocally have initial control of the company, but this will change quickly." While it's not an outright demand for the control of OpenAI, I think it's fair to say that the message doesn't read particularly well and the board rejected Musk's option. It tried to placate him, though, saying "We really want to work with you. We believe that if we join forces, our chance of success in the mission is the greatest. Our upside is the highest. There is no doubt about that. Our desire to work with you is so great that we are happy to give up on the equity, personal control, make ourselves easily firable -- whatever it takes to work with you." Not that this had any effect because Musk's response was unequivocal: "Guys, I've had enough. This is the final straw. Either go do something on your own or continue with OpenAI as a non-profit. I will no longer fund OpenAI until you have made a firm commitment to stay or I'm just being a fool who is essentially providing free funding for you to create a startup. Discussions are over." From the various messages being now made public, Musk was seemingly never hugely opposed to opening up a for-profit OpenAI offshoot or even necessarily for the whole company to go that way. The issue seems to be how it would all be organised and funded. Which does make his current lawsuit look maybe a bit spurious: why is there an issue with a for-profit OpenAI now? Where things go now isn't clear, though I imagine that Elon Musk will have a few things to say on the matter. As far as I can tell, there's no mention of OpenAI's claims on his X account but the man posts a lot so there could be something buried away. The sensible thing to do would be to leave this all in the hands of legal beagles, but I guess OpenAI's post rather sidesteps that.

Elon Musk reportedly wanted OpenAI to be a for-profit entity but has now sued to block the move

Elon Musk has taken legal action to prevent OpenAI from transitioning into a for-profit entity, accusing the organization of abandoning its founding mission. Now, OpenAI is firing back, claiming that Musk is trying to damage the company to set it back and benefit his xAI, a competing AI venture. Also, according to the New York Times, OpenAI claims that Musk wanted to transform OpenAI into a for-profit company and gain financially. "I believe pretty strongly that Elon will do the right thing and that it would be profoundly un-American to use political power to the degree that Elon would hurt competitors and advantage his own businesses," Altman told the New York Times. Sam Altman. Greg Brockman, Ilya Sutskever, and Elon Musk co-founded OpenAI in 2015 to advance artificial intelligence responsibly for the benefit of the public. Musk then left the organization in 2018, claiming that OpenAI founders Sam Altman and Greg Brockman violated the nonprofit's principles by forming a multibillion-dollar partnership with Microsoft. Musk alleges this prioritizes profits over public good, which breaches the company's original purpose. After launching its highly successful ChatGPT in late 2022 and partnering with various commercial companies, OpenAI became a for-profit organization. In March, Musk filed a lawsuit in federal court accusing OpenAI of violating its founding principles. He has since expanded his claims and requested a preliminary injunction to halt OpenAI's planned restructuring, separating its nonprofit governance from its operational decisions. Musk also amended his lawsuit in November to include Microsoft as a defendant, accusing the company of steering OpenAI's priorities toward commercialization. Since Musk now runs a competitive entity, OpenAI called his claims self-serving and disruptive to its development plans. One of OpenAI's arguments is that Musk had previously advocated for the organization to adopt a for-profit structure. According to NYT, the company presented evidence that in 2017, Jared Birchall, head of Musk's family office, registered a company intended to be a for-profit version of OpenAI. Documents and text messages revealed that Musk sought a 50% to 60% equity stake in the proposed entity, which he claimed was necessary to finance an $80 billion Mars colonization project. Additionally, OpenAI alleges that Musk sought personal financial gain through equity compensation in the new structure. These claims were supported by messages from Shivon Zilis, an early board member and liaison to Musk. Zilis is also the mother of at least three of Musk's children. She did not comment to the NYT. Despite the escalating conflict, Sam Altman expressed sadness over the fallout with Musk and stated that he trusts Musk to act ethically now that he has political influence as an advisor to the Trump administration.

OpenAI Dispute Over AI 'Dictatorship' Goes to Court

Musk, an early OpenAI investor and board member, sued the artificial intelligence company earlier this year alleging it had betrayed its founding aims as a nonprofit research lab benefiting the public good rather than pursuing profits. Musk has since escalated the dispute, adding new claims and asking for a court order that would stop OpenAI's plans to convert itself into a for-profit business more fully. The world's richest man, whose companies include Tesla, SpaceX and social media platform X, last year started his own rival AI company, xAI. Musk says it faces unfair competition from OpenAI and its close business partner Microsoft, which has supplied the huge computing resources needed to build AI systems such as ChatGPT.

Musk Backed For-Profit Direction for OpenAI, Leaked Emails Say

OpenAI's move from non-profit to for-profit model at center of dispute, contradicting Musk's recent criticisms. Artificial intelligence startup OpenAI has disclosed old emails from co-founder Elon Musk that showcae his advocacy for a profit-making business model. What Happened: OpenAI made public a series of emails from Musk where he promoted the idea of the company adopting a for-profit structure. This stands in stark contradiction to Musk's recent public disapproval of OpenAI's shift from a non-profit to a for-profit organization. In a blog post, OpenAI charged Musk with trying to suppress the startup while simultaneously developing his own AI competitor, xAI. The company also laid out a timeline of events in a blog post titled "Elon Musk wanted an OpenAI for profit," asserting that Musk had indeed set up a for-profit structure back in 2017. The emails, which date back to November 2015, show Musk expressing discontent with OpenAI's then-non-profit structure. OpenAI alleges that both parties had agreed on transitioning to a for-profit model in the fall of 2017. Also Read: Musk-Altman Rivalry Intensifies With Trump's Appointment of David Sacks However, when Musk couldn't secure majority equity, he reportedly withdrew his support, predicting the company's downfall. The blog post from OpenAI ended with a plea for competition in the marketplace rather than the courtroom, adding another layer to this ongoing legal drama. "Now that OpenAI is the leading AI research lab and Elon runs a competing AI company, he's asking the court to stop us from effectively pursuing our mission," OpenAI wrote in the post. Why It Matters: This development is significant as it adds a new dimension to the ongoing legal battle between Musk and OpenAI. The released emails not only contradict Musk's recent public statements but also shed light on the internal dynamics and disagreements that led to the current dispute. The allegations of Musk trying to suppress OpenAI while developing a competing AI project also raise questions about business ethics and competition in the tech industry. This saga is likely to have far-reaching implications for the AI sector, especially regarding the debate on non-profit versus for-profit structures. Read Next Elon Musk Is Feuding With Sam Altman In A Major Lawsuit Over OpenAI -- And One Appears To Already Have The Upper Hand This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

OpenAI says Elon Musk wanted it to be for-profit in 2017

OpenAI on Friday clapped back against Elon Musk, one of its co-founders, after the billionaire's request last month for a federal court to stop the ChatGPT-maker from converting to a fully for-profit business. In a blog post titled "Elon Musk wanted an OpenAI for-profit," the startup alleged that in 2017, Musk "not only wanted, but actually created, a for-profit" to serve as the company's proposed new structure. "When he didn't get majority equity and full control, he walked away and told us we would fail," OpenAI wrote in the blog post. "Now that OpenAI is the leading AI research lab and Elon runs a competing AI company, he's asking the court to stop us from effectively pursuing our mission." Musk and xAI did not immediately respond to requests for comment. Since Musk announced the debut of xAI, his OpenAI competitor, in July 2023, his startup released its Grok chatbot and has begun raising up to $6 billion at a $50 billion valuation, in part to buy 100,000 Nvidia chips, CNBC reported last month. Musk was questioning OpenAI's nonprofit model from day one, a member of OpenAI's legal team told CNBC. OpenAI's "structure doesn't seem optimal," Musk wrote in a November 2015 email to OpenAI CEO Sam Altman, according to screenshots shared in the blog post. "In particular, the YC stock along with a salary from the nonprofit muddies the alignment of incentives," Musk wrote, according to the screenshots. "Probably better to have a standard C corp with a parallel nonprofit." In July 2017, according to screenshots in the blog post, OpenAI co-founder Greg Brockman texted former board member Shivon Zilis that a conversation he had with Musk "turned into talking about structure" and that Musk "said non-profit was def the right one early on, may not be the right one now." About a week later, according to screenshots shared by OpenAI, Musk forwarded an article about China's plan to match the number of AI research facilities in the U.S. by 2020 and become an AI world leader by 2030, writing, "They will do whatever it takes to obtain what we develop. Maybe another reason to change course." Brockman agreed and wrote that starting in 2018, the path would need to be a "Al research + hardware for-profit." Musk wrote back, "Let's talk Sat or Sun. I have a tentative game plan that l'd like to run by you." During a period of six or more weeks in fall 2017, Musk, Brockman, Altman and others negotiated terms for the planned OpenAI for-profit, but according to email screenshots shared by OpenAI, negotiations fell apart after the participants could not agree on equity, control and who would be CEO. Due to his investment in OpenAI, Musk initially proposed a scenario by which he would "unequivocally have initial control of the company" but said "this will change quickly" after the company's board grew to 12 to 16 members. In September 2017, Musk created a public benefit corporation called "Open Artificial Intelligence Technologies, Inc," according to screenshots included in OpenAI's blog post. A few days later, OpenAI rejected Musk's proposed terms for the for-profit and offered to keep the conversation going, but Musk responded that his offer was "no longer on the table" and that "discussions are over," per screenshots. In January 2018, Musk proposed that OpenAI spin into his electric vehicle company, Tesla, writing, "The only paths I can think of are a major expansion of OpenAl and a major expansion of Tesla Al. Perhaps both simultaneously. The former would require a major increase in funds donated and highly credible people joining our board. The current board situation is very weak." He also wrote that "OpenAI is on a path of certain failure relative to Google." Brockman responded with a lengthy plan, including the idea that the company should "try our best to remain a non-profit," according to screenshots. In February 2018, Musk resigned as co-chair of OpenAI.

New court filing: OpenAI says Elon Musk wanted to own and run it as a for-profit

Why it matters: Musk helped found OpenAI in 2015 but has since become a bitter opponent and critic of the ChatGPT maker. The big picture: Friday's filing is the latest salvo in a high profile legal battle pitting the AI revolution's standard-bearing company against president-elect Trump's closest tech adviser. Musk is also the founder of xAI, an OpenAI rival. Driving the news: OpenAI's new court filing includes a number of e-mails between Musk (and his representatives) and other OpenAI co-founders, including Altman and Ilya Sutskever. What they're saying: "Elon Musk's latest legal filing against OpenAI marks his fourth attempt in less than a year to reframe his claims," OpenAI said in a blog post. "However, his own words and actions speak for themselves -- in 2017, Elon not only wanted, but actually created, a for-profit as OpenAI's proposed new structure." What they're saying: In Sept. 2017, Sutskever sent Musk -- along with Altman and co-founder Greg Brockman -- an email rejecting Musk's terms. Yes, but: The new emails are presented in an OpenAI blog post without full context.

OpenAI fires back against Musk, claims he wanted an OpenAI for-profit | TechCrunch

OpenAI fired back at billionaire Elon Musk on Friday, publishing a series of emails that the company claims show Musk's lawsuit against it is misleading. Musk's legal battle with OpenAI, which has been going on for months now, at its core accuses the company of abandoning its original nonprofit mission to make the fruits of its AI research available to all. Musk withdrew the suit in July, only to revive it late this summer. An amended complaint last month named several new defendants, including OpenAI collaborator and investor Microsoft, and a new plaintiff: Musk's AI company, xAI. In late November, Musk filed for injunction to halt OpenAI's transition to a for-profit, asserting in a complaint filed by his legal team that "irreparable harm" will ensue if the injunction isn't granted. But OpenAI says that it's a case of sour grapes. The way the company tells it, Musk proposed creating a for-profit OpenAI in 2017. But when he didn't get majority equity, he walked away. As far back as 2015, Musk floated the idea of an OpenAI with both a nonprofit and for-profit component, the emails show. "You can't sue your way to [artificial general intelligence,]" OpenAI said. "We have great respect for Elon's accomplishments and gratitude for his early contributions to OpenAI, but he should be competing in the marketplace rather than the courtroom." Musk formed his answer to OpenAI, xAI, last year. Soon after, the company released Grok, an AI model that now powers a number of features on Musk's social network, X (formerly known as Twitter). xAI also offers an API that allows customers to build Grok into third-party apps, platforms, and services. In the motion for an injunction, Musk's attorneys allege OpenAI is depriving xAI of capital by extracting promises from investors not to fund it and the competition. In October, the Financial Times reported that OpenAI demanded investors in its latest funding round abstain from also funding any of OpenAI's rivals, including xAI. Of course, xAI has had no trouble raising money lately. Reportedly, the startup closed a $5 billion round this month with participation from prominent investors including Andreessen Horowitz and Fidelity. With around $11 billion in the bank, xAI is one of the best-funded AI companies in the world. Musk's motion for an injunction also alleges that Microsoft and OpenAI continue to illegally share proprietary information and resources, and that several of the defendants, including Altman, are engaging in self-dealing that harms marketplace competition. For example, the filing notes, OpenAI selected Stripe, a payment platform in which Altman has "material financial interests," as OpenAI's payment processor. (Altman is said to have made billions from his Stripe holdings.)

OpenAI Challenges Musk's Lawsuit, Reveals 2017 Profit Talks - Microsoft (NASDAQ:MSFT), Tesla (NASDAQ:TSLA)

What Happened: OpenAI has responded to Elon Musk's legal efforts to prevent its transition to a fully for-profit structure, accusing the billionaire of undermining the company after failing to gain control during earlier negotiations. In a recent blog post, OpenAI revealed that Musk had initially supported restructuring the organization into a for-profit entity in 2017 but abandoned the idea when his proposal to hold majority control was rejected. "[Musk] walked away and told us we would fail," OpenAI stated, CNBC reports. The dispute stems from Musk's broader critique of OpenAI, which he co-founded, and its growing relationship with Microsoft Corp. MSFT. Musk has filed for a court injunction, claiming the company's shift betrays its original nonprofit mission. Musk's complaints also allege that Microsoft benefits from restricted access to advanced AI models while stifling competition. He voiced concerns about monopolistic behavior in the industry, which have been central to his ongoing legal disputes with OpenAI and Microsoft. Also Read: Fed's December Meeting Could Crush Rate Cut Optimism For 2025 OpenAI, however, maintains that the transformation aligns with its mission of advancing artificial intelligence responsibly, while remaining competitive in an evolving market. Why It Matters: Musk's criticisms highlight growing tension within the AI industry as organizations navigate commercial pressures and ethical concerns. OpenAI has become a dominant force in generative AI, valued at $157 billion and attracting substantial investments, including $14 billion from Microsoft. Musk, meanwhile, has positioned his own venture, xAI, as a rival, raising billions and launching its Grok chatbot. The unfolding legal battle underscores the high stakes in a sector expected to reach $1 trillion in revenue within a decade. Read Next: Tesla's 76% Post-Trump Rally: Bullish Run Or Signal To Cash Out? Photo: Shutterstock This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Trump effect? Have Elon Musk and Mark Zuckerberg ganged up to take on Satya Nadella and Sam Altman backed OpenAI; here's what happened

Meta Platforms and Elon Musk are battling OpenAI in a heated dispute over its decision to transition to a for-profit company.A brewing battle in Silicon Valley is heating up as Meta Platforms and Elon Musk challenge OpenAI's proposed conversion into a for-profit entity. In a move that could reshape how startups operate, Meta has urged California's attorney general to block OpenAI's plans, citing potential harm to public interest and fairness in the business ecosystem. "If OpenAI's new model is allowed, nonprofit investors would gain the same financial returns as traditional investors while enjoying government-granted tax benefits," the letter reportedly stated. Elon Musk, who co-founded OpenAI but later distanced himself from the organization, has taken legal action to block the company's conversion. Musk sued OpenAI and its CEO, Sam Altman, earlier this year, accusing them of putting profit over public good. He has since asked a federal judge to halt the transition into for-profit status. Also Read : Tornado warning in Bay Area of San Francisco; storm to bring heavy rain, possible flooding Musk, who recently launched his own AI venture, xAI, claims OpenAI violated its founding principles, which were initially focused on advancing AI for humanity's benefit rather than monetary gain. In response to these challenges, OpenAI chairman Bret Taylor clarified that the nonprofit segment of OpenAI would continue to operate and benefit from its stake in the for-profit entity. Taylor emphasized that any restructuring would ensure the organization remains mission-driven while supporting its financial and operational growth. Interestingly, Meta's letter aligns with Musk's push to prioritize public interest in the decision-making process surrounding OpenAI's transition. Meta's move signals a rare alignment between two tech giants who typically compete in areas like AI innovation. Also Read : Blackmail for money? Jay-Z rape accuser Jane Doe may have filed a lawsuit with false accusations against the rapper; here are details Has Meta supported Elon Musk in this case? Meta has expressed support for Musk's efforts to represent public interests in the legal process around OpenAI's for-profit transition. What is OpenAI's response to Musk's lawsuit? OpenAI has asked a federal judge to dismiss Musk's request to halt its conversion to a for-profit structure.

Elon Musk wanted to make OpenAI a for-profit company, messages show,...

OpenAI said it would ask a judge in California on Friday to reject a request by billionaire Elon Musk to halt the ChatGPT maker's conversion to a for-profit company. OpenAI also published a trove of emails and text messages with Musk on its website to argue that he initially backed for-profit status for OpenAI before walking away from the company after failing to get a majority equity stake and full control. Musk, who was an OpenAI cofounder, has since launched a competing artificial intelligence company, xAI. Musk sued OpenAI, its CEO Sam Altman and others in August, claiming they violated contract provisions by putting profits ahead of the public good in the push to advance AI. In November he asked US District Judge Yvonne Gonzalez Rogers in Oakland for a preliminary injunction blocking OpenAI from converting to a for-profit structure. A lawyer for Musk did not immediately respond to a request for comment on Friday. OpenAI's blog post said Musk "should be competing in the marketplace rather than the courtroom." Musk has since added Microsoft and others as defendants to his lawsuit, alleging OpenAI was scheming to sideline rivals and monopolize the market for generative artificial intelligence. OpenAI started as a nonprofit in 2014 and has become the face of generative AI through billions of dollars in funding from Microsoft. In October it closed a $6.6 billion funding round from investors, which could value the company at $157 billion. Musk's xAI earlier this month said it had raised about $6 billion in equity financing. OpenAI is working on a plan to restructure its core business into a for-profit benefit corporation. The OpenAI nonprofit would own a minority stake in the for-profit company. Rogers is scheduled to hear arguments on Musk's injunction bid on Jan. 14.

OpenAI fires back at Elon Musk bid to block for-profit conversion

Dec 13 (Reuters) - OpenAI said it would ask a judge in California on Friday to reject a request by billionaire Elon Musk to halt the ChatGPT maker's conversion to a for-profit company. OpenAI also published a trove of emails and text messages, opens new tab with Musk on its website to argue that he initially backed for-profit status for OpenAI before walking away from the company after failing to get a majority equity stake and full control. Musk, who was an OpenAI cofounder, has since launched a competing artificial intelligence company, xAI. Musk sued OpenAI, its CEO Sam Altman and others in August, claiming they violated contract provisions by putting profits ahead of the public good in the push to advance AI. In November he asked U.S. District Judge Yvonne Gonzalez Rogers in Oakland for a preliminary injunction blocking OpenAI from converting to a for-profit structure. A lawyer for Musk did not immediately respond to a request for comment on Friday. OpenAI's blog post said Musk "should be competing in the marketplace rather than the courtroom." Musk has since added Microsoft (MSFT.O), opens new tab and others as defendants to his lawsuit, alleging OpenAI was scheming to sideline rivals and monopolize the market for generative artificial intelligence. OpenAI started as a nonprofit in 2014 and has become the face of generative AI through billions of dollars in funding from Microsoft. In October it closed a $6.6 billion funding round from investors, which could value the company at $157 billion. Musk's xAI earlier this month said it had raised about $6 billion in equity financing. OpenAI is working on a plan to restructure its core business into a for-profit benefit corporation. The OpenAI nonprofit would own a minority stake in the for-profit company. Rogers is scheduled to hear arguments on Musk's injunction bid on Jan. 14. Reporting by Mike Scarcella; Editing by David Bario and Daniel Wallis Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Boards, Policy & RegulationRegulatory Oversight

OpenAI published more of Elon Musk's emails if that's something you want to read

OpenAI , in the form of a long timeline of emails, texts and legal filings, illustrating that to prevent OpenAI from converting into a for-profit company runs counter to what he wanted in 2017. Essentially, OpenAI is providing even more evidence to the fact that its former co-founder wanted the AI startup to become a for-profit company and make him CEO. You should read the whole blog to get all of the details (and get a sense for how billionaires email) but the gist is that in 2017, Musk and OpenAI came to an understanding that the then non-profit needed to become a for-profit to "advance its mission" and seemingly capitalize on the public interest earned from its in one-on-one matches. According to OpenAI, Musk proposed a new board structure where he "would unequivocally have initial control of the company," which OpenAI was opposed to. That led to the disagreements between Musk and OpenAI leadership, and him ultimately leaving the nonprofit's board in 2018. , Musk's AI startup that's a direct competitor to OpenAI, was started in 2023. It's pretty clear what OpenAI is trying to do here. Musk first in March 2024 over the company's dealings with Microsoft and the belief they violated its non-profit status. He not long after with emails that suggested Musk wanted OpenAI to either merge with Tesla or make him CEO. OpenAI's new blog expands on all those details with new material and seems set up to achieve a similar effect.

OpenAI fires back at Elon Musk bid to block for-profit conversion

(Reuters) - OpenAI said it would ask a judge in California on Friday to reject a request by billionaire Elon Musk to halt the ChatGPT maker's conversion to a for-profit company. OpenAI also published a trove of emails and text messages with Musk on its website to argue that he initially backed for-profit status for OpenAI before walking away from the company after failing to get a majority equity stake and full control. Musk, who was an OpenAI cofounder, has since launched a competing artificial intelligence company, xAI. Musk sued OpenAI, its CEO Sam Altman and others in August, claiming they violated contract provisions by putting profits ahead of the public good in the push to advance AI. In November he asked U.S. District Judge Yvonne Gonzalez Rogers in Oakland for a preliminary injunction blocking OpenAI from converting to a for-profit structure. A lawyer for Musk did not immediately respond to a request for comment on Friday. OpenAI's blog post said Musk "should be competing in the marketplace rather than the courtroom." Musk has since added Microsoft and others as defendants to his lawsuit, alleging OpenAI was scheming to sideline rivals and monopolize the market for generative artificial intelligence. OpenAI started as a nonprofit in 2014 and has become the face of generative AI through billions of dollars in funding from Microsoft. In October it closed a $6.6 billion funding round from investors, which could value the company at $157 billion. Musk's xAI earlier this month said it had raised about $6 billion in equity financing. OpenAI is working on a plan to restructure its core business into a for-profit benefit corporation. The OpenAI nonprofit would own a minority stake in the for-profit company. Rogers is scheduled to hear arguments on Musk's injunction bid on Jan. 14. (Reporting by Mike Scarcella; Editing by David Bario and Daniel Wallis)

OpenAI Says Musk Backed For-Profit Structure Before Calling Shift 'Illegal'

OpenAI pushed back at Elon Musk's efforts to block its plan to become a for-profit business by releasing a slew of emails and messages indicating the billionaire originally supported a more traditional corporate structure for the artificial intelligence startup. The internal communication, published in a blog post on Friday, came in response to Musk's recent request that a federal court block the startup from pursuing what he called an "illegal" conversion to a for-profit company. Musk's filing continued a months-long attack on OpenAI Chief Executive Officer Sam Altman, nine years after the two men worked together to launch OpenAI as a nonprofit with a stated mission to develop generative AI for the benefit of society. In the filing, Musk, who left OpenAI in 2018 and is also the founder of rival startup xAI, repeated his earlier claims that OpenAI broke its promises to him and abandoned its founding purpose as a charity when it accepted billions of dollars in backing from Microsoft Corp. starting in 2019. He also said that without quick court intervention, it will soon be too late to stop Altman's "behemoth" from crushing its rivals. However, the emails released by OpenAI suggest Musk thought the startup should include a for-profit component in its earliest days. In a message sent to Altman shortly before OpenAI's launch in late 2015, Musk wrote that, rather than following a plan to have a Delaware-based nonprofit structure, it was "probably better" to form "a standard C-corp with a parallel nonprofit." OpenAI said Musk went as far as creating a Delaware-based for-profit entity -- a public benefit corporation that was proposed as a new structure for the company, the same setup the company is now weighing. The startup included a screenshot of a Delaware state business search web page showing the registration of a public benefit corporation called Open Artificial Intelligence Technologies Inc. in September 2017. OpenAI said Musk had his money manager, Jared Birchall, create the entity. OpenAI also posted a copy of a Delaware annual franchise tax report for 2018 that lists Birchall as a director of the company. "When he didn't get majority equity and full control, he walked away and told us we would fail," OpenAI said. "Now that OpenAI is the leading AI research lab and Elon runs a competing AI company, he's asking the court to stop us from effectively pursuing our mission."

Meta Joins Elon Musk in Opposing OpenAI's For-Profit Transition

Meta has joined Elon Musk in urging California lawmakers to stop ChatGPT firm OpenAI from becoming a fully for-profit company. OpenAI currently operates in a type of hybrid structure that includes a nonprofit and fully commercial arm. However, it's been reported that the startup is currently in discussions with California regulators about becoming a fully for-profit entity. In a letter to Attorney General Rob Bonta, first reported by The Wall Street Journal, Meta alleged that the transition would have "seismic implications for Silicon Valley." "If OpenAI's new business model is valid, nonprofit investors would get the same for-profit upside as those who invest the conventional way in for-profit companies while also benefiting from tax write-offs bestowed by the government," read the letter to Bonta. Earlier this month, Musk's legal team asked the court for an injunction to prevent OpenAI from becoming a fully for-profit enterprise, claiming that "irreparable harm" will be caused if the injunction isn't granted. The filing was the latest in a lawsuit initiated in March, which accused OpenAI of a variety of offenses including defrauding investors, wire fraud, and anti-competitive practices. Meta's letter showed support for Musk's request for an injunction, saying that Musk and his co-plaintiff Shivon Zilis are "qualified and well-positioned to represent the interests of Californians in this matter." The latest legal action comes as OpenAI has hit back with new defenses against the Tesla CEO's allegations. OpenAI released a variety of screencaps on its blog showing that Musk had at one point expressed openness to OpenAI embracing a for-profit structure. These screencaps have not yet been independently verified, noted the WSJ. According to the OpenAI blog post, Musk sent an email to CEO Sam Altman saying the company's "structure doesn't seem optimal." Musk went on to say that a "salary from the nonprofit muddies the alignment of incentives" and that it's "probably better to have a standard C corp with a parallel nonprofit." The Tesla CEO also allegedly forwarded an email about China investing heavily in AI research facilities, commenting: "Maybe another reason to change course." OpenAI's blog also alleged that in 2018, Musk suggested that OpenAI merge with Tesla. Musk also allegedly sent an email to OpenAI executive Ilya Sutskever in 2017, suggesting a shareholding structure where he "would unequivocally have initial control of the company." Musk has not responded to the allegations in OpenAI's recent blog post at the time of writing. Musk and Meta have had very public disputes in the past; with Musk even agreeing to fight CEO Mark Zuckerberg in a cage fight in 2023, later calling Zuckerberg "a chicken."

Did the world's richest man lie? Sam Altman and Elon Musk' feud takes an ugly turn, OpenAI publishes Tesla CEO's old emails showing he favored a for-profit structure

In a recent development it has come to light that Tesla CEO Elon Musk actually favored a for-profit structure for OpenAI as the company publishes several old emails. OpenAI has escalated its legal feud with co-founder Elon Musk by pretty recently publishing his old emails, which actually reveals that he previously advocated for the company to adopt a for-profit structure, reported Business Insider. According to Business Insider, in a recent blog post and legal filing, OpenAI highlighted an email from the year 2015 in which Elon Musk eventually expressed concerns that the nonprofit model was 'not optimal'. Adding onto that, the company also noted that Elon Musk had supported a transition to for-profit in the year 2017 while contradicting his current opposition to such a move. Elon Musk has filed innumerable lawsuits against OpenAI while seeking to halt its transition to a for-profit entity and at the same time alleging that the organization has strayed from its original mission of serving public interest, asserted Business Insider. He also claims that the partnership of OpenAI with Microsoft creates a severely unfair competitive advantage for his own AI venture named xAI. Also Read : Big financial blow: Netflix may not renew Prince Harry, Meghan Markle's $100 million contract; here's why At the same time, in response, OpenAI accused Elon Musk of attempting to undermine the startup while developing his competitor. The ongoing legal battle hugely reflects broader tensions in the AI industry specifically regarding governance and competition. The recent blog post of OpenAI severely criticized the actions of Elon Musk as hypocritical and then stated that he should focus on competing in the market rather than resorting to litigation, noted Business Insider. During such times, it should also be noted that a court hearing regarding the injunction request of Elon Musk is scheduled for the month of January. Also Read : Was Donald Trump impressed with her? Don Jr, shows off newest love interest Bettina Anderson to dad at Mar-a-Lago Which company published some old emails of Tesla CEO Elon Musk while escalating a legal feud with him? OpenAI has escalated its legal feud with co-founder Elon Musk by pretty recently publishing his old emails, which actually reveals that he previously advocated for the company to adopt a for-profit structure. Why has Elon Musk filed multiple lawsuits against Open AI? Elon Musk has filed innumerable lawsuits against OpenAI while seeking to halt its transition to a for-profit entity and at the same time alleging that the organization has strayed from its original mission of serving public interest.

OpenAI Says Musk Wanted For-Profit Structure

OpenAI on Friday hit back at Elon Musk, who co-founded the artificial intelligence developer but is now its biggest antagonist. Two weeks after Musk asked a court to stop OpenAI from converting itself to a for-profit enterprise from a nonprofit, OpenAI has responded with claims that Musk not only wanted OpenAI to make such a conversion in the past, but he actually took steps to make it happen.

Meta asks California AG to block OpenAI's conversion to for-profit | TechCrunch

Facebook's parent company Meta is supporting Elon Musk's effort to block OpenAI's conversion from a non-profit company into a for-profit one. As reported by The Wall Street Journal, Meta sent a letter to California Attorney General Rob Bonta arguing that allowing the shift would have "seismic implications for Silicon Valley." And while the company asked Bonta to take "direct action," it also said Musk and former OpenAI board member Shivon Zilis "are qualified and well-positioned to represent the interests of Californians in this matter." "If OpenAI's new business model is valid, non-profit investors would get the same for-profit upside as those who invest the conventional way in for-profit companies while also benefiting from tax write-offs bestowed by the government," Meta wrote. Meta has become one of OpenAI's big competitors in the AI market. Musk, meanwhile, was originally a co-founder at OpenAI before eventually splitting from the company, starting rival xAI, and taking legal action that includes seeking an injunction to stop its transition into a for-profit. (Zilis is also a plaintiff in Musk's lawsuit.) OpenAI responded by publishing emails and texts from Musk and arguing that "he should be competing in the marketplace rather than the courtroom."