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Musk Expands OpenAI Lawsuit
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According to recent reports, Elon Musk has filed an amended lawsuit against OpenAI, expanding the list of defendants to include Microsoft, LinkedIn co-founder Reid Hoffman, and former OpenAI board member Dee Templeton. The lawsuit alleges that OpenAI has abandoned its original nonprofit mission, accusing the company of prioritizing profits over the public good and seeking to invalidate its licensing agreement with Microsoft.
Musk's amended lawsuit against OpenAI names Microsoft as ...
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Elon Musk adds Microsoft as a defendant in OpenAI lawsuit, accusing them of anticompetitive conduct
Elon Musk adds Microsoft as a defendant in OpenAI lawsuit, accusing them of anticompetitive conduct
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Elon Musk Adds Microsoft to Suit Against OpenAI
Elon Musk Adds Microsoft to Suit Against OpenAI
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Musk names Microsoft as defendant in amended lawsuit against OpenAI
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Elon Musk adds Microsoft as defendant in his lawsuit against OpenAI
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Expanded Legal Battle

Elon Musk's amended lawsuit against OpenAI now includes Microsoft as a defendant, alongside new plaintiffs xAI and Shivon Zilis
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. The revised complaint alleges:
  • OpenAI is attempting to eliminate competitors like xAI by pressuring investors not to fund rival AI ventures
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  • Microsoft and OpenAI have formed a "de facto merger," exchanging competitively sensitive information
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  • The partnership between Microsoft and OpenAI violates antitrust laws through interlocking directorates
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  • OpenAI has abandoned its non-profit mission, becoming "fast becoming a fully for-profit subsidiary of Microsoft"
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The lawsuit seeks to compel OpenAI to adhere to its founding agreement and return to its original mission of developing AI for the benefit of humanity, not for profit
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. OpenAI has dismissed the claims as "blusterous" and baseless
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Alleged Breach of Founding Agreement

Elon Musk's lawsuit against OpenAI centers on an alleged "Founding Agreement" that he claims was breached. The suit contends that OpenAI's co-founders agreed to develop artificial general intelligence (AGI) as a non-profit entity for the benefit of humanity, with open-source technology
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. Musk alleges that OpenAI violated this agreement by:
  • Transforming into a "closed-source de facto subsidiary" of Microsoft
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  • Prioritizing profit over the original mission of benefiting humanity
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  • Keeping GPT-4's internal workings secret, contrary to open-source principles
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  • Allowing Microsoft undue influence over the company's governance
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OpenAI, however, disputes the existence of any such binding agreement, describing it as "make-believe" in their legal response
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. The company counters that Musk himself supported plans for a for-profit structure and sought to control OpenAI, potentially merging it with Tesla
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Microsoft's Role in OpenAI's Direction

Microsoft has relinquished its observer role on OpenAI's board earlier this year, citing confidence in the company's current direction and progress
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. This decision came amid increasing regulatory scrutiny of Big Tech's influence over artificial intelligence companies. Key points include:
  • Microsoft gained the observer seat during OpenAI's leadership turmoil in November 2023
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  • The company played a crucial role in reinstating Sam Altman as CEO and restructuring OpenAI's board
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  • Microsoft's $13 billion investment in OpenAI has raised antitrust concerns in the US, UK, and EU
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  • OpenAI is shifting its approach to stakeholder engagement, planning regular meetings with partners and investors to collaborate on safety and security issues
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The move reflects a broader trend of tech giants reassessing their formal ties with AI companies as regulators examine potential market dominance resulting from such partnerships
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Related
Why did Microsoft decide to step down from the observer role on OpenAI's board
How might Microsoft's departure affect OpenAI's future strategies
What impact will this change have on Microsoft's investment in OpenAI
How does this decision reflect the current regulatory environment for tech companies
What are the implications of Apple not taking up a board role at OpenAI
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