Musk and Altman, once allies and partners, have become clear rivals in a game of intrigue over attitudes toward AI
Reported by UNN with reference to El Periodico and Yahoo! Finance.
A legal feud is escalating between Elon Musk (billionaire, founder of SpaceX, Neuralink, and others) and Sam Altman (CEO of OpenAI, an artificial intelligence research laboratory).
An artificial intelligence startup recently published a series of emails that show the tech mogul was trying to turn a research lab into a commercial company, with the goal of achieving “absolute control.”
In turn, Musk, who now runs a rival artificial intelligence company called xAI, is trying to convince a federal judge to issue an injunction that will prevent the creator of ChatGPT from turning into a commercial company.
Last week, Altman, OpenAI, and its largest sponsor Microsoft, which is also a defendant in the case, responded to Musk's request for urgent judicial intervention, calling his accusations “false.
He (Musk) has no legal grounds to block the conversion of OpenAI for profit
For reference
In March 2019, OpenAI changed its structure to have two boards - a non-profit and a limited profit one. In November 2022, the company launched the ChatGPT marketplace, revolutionizing the market and kick-starting an AI investment fever that swept tech giants and countries around the world.
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In March 2023, Elon Musk signed a letter calling for a six-month halt to the deployment of new AI tools, hinting at “great risks to humanity.” Four months later, he announced the launch of xAI, his own artificial intelligence company. Last May, xAI raised $6 billion to try to compete with ChatGPT.
Meanwhile, OpenAI and Microsoft (MSFT) are discussing how to divide the spoils of the artificial intelligence upstart when and if OpenAI becomes a commercial company.
OpenAI and Microsoft have hired Wall Street investment banks Goldman Sachs (GS) and Morgan Stanley (MS) to advise on these discussions.
It is also important to note that OpenAI closed a $6.6 billion funding round, valuing itself at $157 billion.
AddendumAddendum
OpenAI's commercial pivot has caused turbulence within the company, El Periodico reports. In September, then-CEO Mira Murati and two other managers left OpenAI amid a restructuring at the company that “prioritized economic benefits,” including facilitating investor engagement. The change of course could directly benefit Sam Altman as he continues to accumulate more power and could gain a 7% stake in the company.