TECH NEWS – Musk says the company’s name does not reflect OpenAI’s actual position.

Late Thursday night US time, Musk filed the lawsuit against OpenAI CEO Sam Altman and OpenAI, alleging that the company has breached its nonprofit contract, promissory estoppel, and fiduciary duty by backing away from its commitment to create open source AI, and that OpenAI’s major investor may be behind it. Microsoft.

“OpenAI, Inc. has been transformed into a de facto closed-source subsidiary of the world’s largest technology company: Microsoft. Under its new board of directors, it is not only developing, but actually refining an AGI [artificial general intelligence] to maximize profits for Microsoft, rather than for the benefit of humanity. And it is closed for proprietary commercial reasons: Microsoft stands to make a fortune selling GPT-4 to the public, which would not be possible if OpenAI – as it is required to do – made the technology freely available to the public,” Musk’s lawsuit states.

According to Elon Musk, OpenAI’s non-profit approach has been distorted by a for-profit CEO and a board of directors with little knowledge of AGI and AI public policy. Musk is asking the court to prohibit OpenAI, Altman, Gregory Brockman (the company’s president), and Microsoft from making money from nonprofit AI technology. Musk left the OpenAI board as a founding member in 2018 and is now trying to catch up to GPT-4’s large language model (LLM) with his own AI model, xAI’s Grok.

Last January, Microsoft invested $10 billion in OpenAI, which received a 49% stake in return (OpenAI had previously received an additional $3 billion). The Altman-led company will be able to use Microsoft’s Azure cloud computing services, while the Redmond company will get 75% of the profits until Microsoft recoups its $13 billion, and then 49% of the profits until OpenAI’s profits reach $92 billion. After that, the nonprofit OpenAI Foundation will own Microsoft’s shares again.

This agreement is very much “specialised” in money…

Source: WCCFTech, Courthouse News