OpenAI and Elon Musk in legal tangle: AI mission derailed by clash over control and profit

OpenAI has issued an official response to a lawsuit filed by Elon Musk, alleging that the tech entrepreneur pushed for the AI startup to merge with Tesla or grant him full control.

OpenAI's response detailed the discussions with Musk regarding a shift to a for-profit structure.

The company claimed that Musk wanted either a merger with Tesla or complete control, including majority equity, initial board control, and the CEO position.

Add WION as a Preferred Source

OpenAI asserted that they could not agree to these terms as it contradicted their mission of preventing any individual from having absolute control.

Musk allegedly suggested linking OpenAI with Tesla as a 'cash cow,' a proposal the start-up rejected.

Quoting an email from Musk, OpenAI revealed their perspective on Tesla, stating, "Tesla is the only path that could even hope to hold a candle to Google. Even then, the probability of being a counterweight to Google is small. It just isn’t zero."

Elon Musk, in his lawsuit, accused OpenAI of transforming into a closed-source subsidiary of Microsoft, prioritising profits for the tech giant over the original mission for the benefit of humanity.

He demanded that OpenAI revert to an open-source platform, citing a breach of fiduciary duty --actions taken in the best interests of another person or entity,and unfair business practices.

In response to Musk's conditions for dropping the lawsuit, OpenAI also revealed that Musk proposed a name change to "ClosedAI."