Elon Musk has escalated his litigation against OpenAI and CEO Sam Altman in his most recent filing, following the dismissal of his previous lawsuit in June.
Elon Musk, the CEO of Tesla and a tech magnate, has resumed his legal dispute with OpenAI, an artificial intelligence (AI) development firm, following his previous decision to withdraw the lawsuit.
Musk alleges that OpenAI CEO Sam Altman and others fraudulently induce him to invest in the company in a Monday filing with the United States court for the northern district of California. He asserts that his $44 million investment was predicated on the assumption that OpenAI would continue to be a nonprofit organization dedicated to the development of open-source AI for the benefit of humanity..
Rather, Musk asserts that Altman and other individuals covertly intended to transform OpenAI into a for-profit enterprise after its AI research yielded valuable technology. Musk alleges that the defendants violated agreements, engaged in self-dealing, and unjustly profited from OpenAI’s technology through agreements with Microsoft and other entities.
The complaint also includes allegations of fraud, breach of contract, unjust competition, false advertising, and violations of the Racketeer Influenced and Corrupt Organizations Act (RICO). The defendants, in addition to Altman, consist of a variety of corporate entities associated with OpenAI, as well as Gregory Brockman, the Chief Technology Officer of OpenAI.
Musk is requesting declarations that certain OpenAI agreements with Microsoft are invalid, disgorgement of profits, injunctive relief, and damages. The complaint claims that the defendants’ actions have harmed his business interest and reputation in the AI field.
This complaint is significantly more detailed than Musk’s previous one against OpenAI, which Decrypt documented in March. It spans 83 pages, an increase from 46 pages. Furthermore, the new complaint specifically charges the defendants of fraudulently inducing Musk to co-found and fund OpenAI, which renders the accusations more serious from a legal perspective.
The previous litigation was dismissed in mid-June, with the intention of reevaluating the legal strategy and submitting a new complaint. The new complaint also alleges premeditation, alleging that a covert scheme was in place to deceive Musk into financing an organization that would subsequently transform into a for-profit company.
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