OpenAI denies Elon Musk lawsuit claim that there ever was founding agreement

Technology
Tuesday, March 12th, 2024 2:11 pm EDT

Key Points

  • OpenAI challenges Elon Musk’s claim of a breach of contract in his lawsuit against the startup, disputing the existence of a foundational agreement from 2015 that Musk referenced.
  • The legal battle is part of OpenAI’s broader challenges as it seeks to commercialize its ChatGPT chatbot and AI models, facing lawsuits not only from Musk but also from entities like the New York Times over copyright infringement.
  • Musk’s claims are labeled as frivolous by OpenAI, which asserts that evidence would reveal his prior agreement with the startup’s transition to a for-profit structure in 2017.

OpenAI finds itself embroiled in legal disputes, notably with Tesla CEO Elon Musk, who filed a lawsuit earlier this month. Musk claimed a breach of contract, citing a 2015 agreement that the AI lab would remain nonprofit and transparent. However, OpenAI challenges the existence of such an agreement, labeling it a “fiction” concocted by Musk. The startup argues that Musk initially supported the enterprise but later distanced himself. OpenAI released documents to counter Musk’s claims and described them as frivolous. Despite Musk’s assertions, OpenAI contends that evidence would reveal his prior approval of the startup’s transition to a for-profit model in 2017. The legal battle is further complicated by the involvement of AI technology, prompting OpenAI to request special case management. Meanwhile, Musk, who runs his AI lab called X.AI, announced the release of Grok, a chatbot, under an open-source license. OpenAI, with its ChatGPT boasting 100 million weekly users, accuses Musk of seeking to benefit from its success by pursuing baseless legal action, aiming to bolster his own endeavors while casting doubt on OpenAI’s integrity.

For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/11/openai-denies-musk-lawsuit-claim-that-there-was-founding-agreement.html