Elon Musk Files a Lawsuit Against Sam Altman and OpenAI

Mar 1, 2024 | 0 comments

 Elon Musk Sitting
Image Credits: Flickr

Elon Musk just sued OpenAI, Sam Altman, Greg Brockman, and many other OpenAI executives for a breach of contract. The lawsuit was filed on Thursday in San Francisco Superior Court.

According to the lawsuit, Elon Musk has accused OpenAI of breach of contract, breach of fiduciary duty, and unfair business practices.

What did the contract say?

In 2015, Elon Musk was approached by Sam Altman and OpenAI’s cofounder, Greg Brockman, to develop OpenAI, a company for building artificial general intelligence (AGI) to help humanity.

According to the contract, OpenAI’s mission was to create an open-source, non-profit company that would benefit humanity, but recently OpenAI was observed prioritizing profit with their products.

Musk left his position as OpenAI’s board member in 2018 after disagreements over GPT-4 and the advancements of AGI technology.

OpenAI is Becoming Closed-Source

OpenAI is making money with GPT-4 models, and the design of GPT-4 is also hidden, which breaches the contract of OpenAI according to which they should be an open-source and non-profit company.

According to Elon Musk, “OpenAI has been transformed into a closed-source de facto subsidiary of Microsoft. 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.”

Microsoft’s Interference in Business Operations of OpenAI

The lawsuit says that Microsoft is continuously interfering with the business operations of OpenAI and making profits. After Sam Altman was removed from the position of CEO, Microsoft helped him regain his position back in the company, and the board members who wanted to remove him from the position were later forced to resign. The current board lacks the technical expertise and understanding of AGI.

“OpenAI, Inc.’s once carefully crafted non-profit structure was replaced by a purely profit-driven CEO and a board with inferior technical expertise in AGI and AI public policy. The board now has an observer seat reserved solely for Microsoft,” according to the lawsuit.


The lawsuit raises concerns for the Microsoft-backed company. Elon Musk wants OpenAI to again follow open-source practices and work for the betterment of humanity rather than maximizing profits.

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