OpenAI has now officially responded to a recent lawsuit filed by Tesla and SpaceX CEO Elon Musk and claimed that Musk wanted the AI startup to merge with Tesla or seek full control of the company. In a recently filed lawsuit, Musk had claimed that OpenAI compromised from its original mission to build AI systems for public welfare and transformed into a profit maximization entity under Microsoft.
Responding to Elon Musk‘s claims about moving to a for-profit structure, OpenAI said, “As we discussed a for-profit structure in order to further the mission, Elon wanted us to merge with Tesla or he wanted full control. Elon left OpenAI, saying there needed to be a relevant competitor to Google/DeepMind and that he was going to do it himself. He said he’d be supportive of us finding our own path.”
“In late 2017, we and Elon decided the next step for the mission was to create a for-profit entity. Elon wanted majority equity, initial board control, and to be CEO. In the middle of these discussions, he withheld funding. Reid Hoffman bridged the gap to cover salaries and operations.” the company added.
OpenAI said it couldn’t agree on for-profit terms with Musk because the company felt “it was against the mission for any individual to have absolute control over OpenAI.”
The Sam Altman-led startup alleges that Musk had then suggested attaching OpenAI with Tesla as a ‘cash cow’. OpenAI also quoted an email from Musk as saying “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”
Musk’s accusations against OpenAI:
Elon Musk had filed a lawsuit against OpenAI on Thursday at the San Francisco Superior Court of breach of contract. In the lawsuit Musk accused OpenAI of breach of fiduciary duty and unfair business practices, claiming that the AI company has breached its founding agreement and should revert to an open source platform.
“OpenAI has been transformed into a closed-source de facto subsidiary of the largest technology company in the world: Microsoft.1 Under its new Board, it is not just developing but is actually refining an AGI to maximize profits for Microsoft, rather than for the benefit of humanity.” the lawsuit by Musk had alleged.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates & Live Business News.
Published: 06 Mar 2024, 10:33 AM IST