Elon Musk Files New Lawsuit Against OpenAI, Sam Altman

Elon Musk has filed a new lawsuit against OpenAI and its CEO, Sam Altman, re-opening a legal battle over artificial intelligence (AI). Musk, who co-founded OpenAI in 2015, initially sued the company in February, accusing it of abandoning its nonprofit mission by reserving advanced AI technology for private customers. He dropped the lawsuit in June after OpenAI published old emails from Musk related to the company's creation.^[1]

The new lawsuit, filed in federal court in Northern California, reiterates the previous claims and adds accusations of racketeering activity. The suit also names co-founder Gregory Brockman. Musk's lawyer, Marc Toberoff, stated that the lawsuit aims to hold OpenAI accountable for its alleged misrepresentations and emphasizes the importance of AGI's future.

Musk alleges betrayal by Altman and his associates, describing the situation as "Shakespearean" in its deceit. The lawsuit also points to a leadership crisis last year, during which Altman was briefly fired and then reinstated, with Microsoft gaining a non-voting seat on OpenAI's board.

The 83-page lawsuit claims that OpenAI's partnership with Microsoft deviated from its original mission, accusing Altman of creating for-profit affiliates, engaging in self-dealing, and draining the nonprofit of its valuable technology and personnel.

In March, OpenAI dismissed Musk's original claims as "incoherent" and "frivolous," publishing emails that suggested Musk understood the need for significant funding. Musk's lawsuit was dropped after these emails were made public.

The new lawsuit alleges that Altman and Brockman manipulated Musk into co-founding OpenAI, claiming they exploited his concerns about AI's existential risks.

In June, Altman informed some shareholders that the company is considering a shift to a for-profit firm structure, according to a report by The Information. This potential change would mean the firm's nonprofit board would no longer control the company.