Elon Musk sued OpenAI and its Chief Executive Sam Altman, alleging they broke the artificial-intelligence company’s founding agreement by giving priority to profit over the benefits to humanity.
The lawsuit, filed late on Thursday in a San Francisco court, marks a dramatic escalation of a long-simmering feud between tech industry titans over the future of AI. It pits Musk, one of the world’s richest people, against the world’s most valuable company, Microsoft, and Altman, one of Silicon Valley’s leading entrepreneurs.
It also sets up a potential courtroom debate over a topic that has roiled policymakers and businesses for much of the past year: How scared should we all be about advances in AI—and how soon?
Musk, who helped found the ChatGPT maker in 2015, claims OpenAI’s close relationship with Microsoft goes against the company’s original commitment to public, open-source AI.
Upon founding OpenAI, Musk and co-founders Altman and Greg Brockman agreed to pursue the nonprofit approach “for the benefit of humanity,” and not any single company, according to the court filing. At the time, the founders’ goal was to create a nonprofit counterweight to Alphabet’s Google, which Musk thought was too powerful in AI.
In an email to Musk in 2015, Altman said he thought it wasn’t possible to stop humanity from developing AI and added, “If it’s going to happen, it seems like it would be good for someone other than Google to do it first,” according to the court filing.
Musk was OpenAI’s primary benefactor at its outset. But after Musk clashed with Altman over control and plans to create a for-profit entity, the lawsuit contends, he stepped down as co-chair in 2018 and slowed his financial contributions.
Microsoft then stepped in. The tech giant, which first invested in OpenAI in 2019, ramped up the partnership last year. It invested $13 billion in exchange for what is effectively a 49% stake in the earnings of OpenAI’s for-profit arm.
OpenAI recently closed a tender offer that valued the company at more than $80 billion.
Musk has long warned of what he calls a grave threat to humanity from artificial general intelligence, or AGI—in essence, that machines are able to reason like humans.
In the lawsuit, Musk asks the court to rule that OpenAI has effectively achieved an early version of AGI with some of its tools. He also points to how Microsoft’s deal with OpenAI only gives it access to the company’s pre-AGI technology—effectively arguing that Microsoft should remove the latest version of ChatGPT from its products.
“OpenAI, Inc. has been transformed into a closed-source de facto subsidiary of the largest technology company in the world: Microsoft,” the suit says. “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.”
Musk is bringing claims including breach of contract, breach of fiduciary duty and unfair business practices against OpenAI and the two co-founders, Altman and Brockman. In the lawsuit, he asked for an order compelling OpenAI to make all of its research and technology open to the public and for the company and Altman to be required to give up all money received as a result of the practices alleged to be unlawful.
OpenAI declined to comment. Musk didn’t respond to a request for comment.
Altman has said OpenAI takes its safety obligations seriously and that the technology should be developed with great caution. But he says he also believes it offers immense commercial possibilities.
While the lawsuit casts Musk as being a defender of OpenAI’s founding principles, some observers see the lawsuit more as an example of sour grapes.
“Mostly, this is an argument that Altman hasn’t managed the various entities as Musk would prefer,” Ann M. Lipton, a law professor at Tulane University, wrote on social media.
The lawsuit recounts several episodes from the historical development of AI and portrays Musk as often a lonely voice in Silicon Valley warning of the technology’s potential dangers.
In one 2013 incident, Musk warned Larry Page, then the CEO of Google, that AI systems might make the human species “irrelevant or even extinct.” Page responded by claiming Musk “was being a ‘specist’—that he favored the human species over intelligent machines,” according to the lawsuit.
Later, Musk tried to stop Google from buying the AI lab DeepMind, which now helps lead the company’s AI efforts, arguing to DeepMind co-founder Demis Hassabis that “the future of AI should not be controlled by Larry,” referring to Page, the lawsuit adds.
Much of the lawsuit rests on claims that OpenAI’s co-founders agreed with Musk that AI should be controlled for the benefit of all humanity to avoid potential existential risks. It cites a 2015 email from Altman to Musk saying that “The technology would be owned by the foundation and used ‘for the good of the world,’” and adding that “safety should be a first-class requirement.”
Musk argues that his early financing of OpenAI was contingent on those promises. The lawsuit says he contributed more than $44 million to OpenAI between 2016 and 2020. It also says he paid its initial office rental expenses and expended significant time helping with early hiring.
Musk has said for years that poorly built AI could have catastrophic consequences for humanity. Since OpenAI’s ChatGPT system became a viral sensation in 2022, Musk has criticized it for being too politically correct and warned it could lead AI to become too powerful for humans to control.
Last year, Musk created a new AI company called xAI, with the goal of building a rival to OpenAI. Two weeks after incorporating xAI, Musk signed an open letter calling for a six-month pause on AI development models to allow regulators and companies to assess the risks.
The lawsuit adds to the turmoil surrounding OpenAI, which includes the board ousting Altman last November, only for him to return weeks later. The Wall Street Journal reported this week that the Securities and Exchange Commission is investigating whether the company misled its investors during that process.