OpenAI Defends For-Profit Transition Amid Musk's Legal Challenge

Dec 13, 2024, 09:53 PM

OpenAI has responded to a lawsuit by Elon Musk, who is attempting to block the company's transition to a for-profit structure. Musk, an early investor and co-founder of OpenAI, claims that the company has deviated from its original mission to benefit the public good. In its defense, OpenAI published internal communications showing that Musk initially supported the idea of a for-profit model for the organization, even proposing a for-profit structure in 2017 where he would have 'unequivocal initial control'. The dispute highlights a seven-year rivalry between Musk and OpenAI CEO Sam Altman over the control and direction of the company, particularly in preventing an AI 'dictatorship'. Musk's lawsuit alleges that OpenAI and Microsoft, its major investor, are exploiting his contributions to build a for-profit monopoly, targeting his new AI venture, xAI. Musk resigned from OpenAI's board in 2018 after failing to secure majority control. OpenAI argues that Musk's legal actions are motivated by business competition rather than concerns over the company's mission. A court hearing is scheduled for January 2025 to address Musk's injunction request.