OpenAI, the most valuable artificial intelligence startup, has firmly responded to Elon Musk’s recent legal action, dismissing the claims made by the billionaire entrepreneur and suggesting that his involvement in the company’s co-founding did not significantly impact its development and success.
Revealing Musk’s Limited Financial Contribution
the Microsoft-backed startup disclosed that since its inception in 2015, it had raised less than $45 million from Musk, despite his initial commitment to provide up to $1 billion in funding
In a blog post authored collectively by OpenAI’s leadership team – Greg Brockman, Ilya Sutskever, John Schulman, Sam Altman, Wojciech Zaremba, and OpenAI itself – the Microsoft-backed startup disclosed that since its inception in 2015, it had raised less than $45 million from Musk, despite his initial commitment to provide up to $1 billion in funding. The company also secured more than $90 million from other donors to support its research efforts.
The Crux of the Legal Battle
Musk sued Altman, Brockman, OpenAI, and other affiliates last week, alleging that the ChatGPT-maker had breached its original contractual agreements
OpenAI’s response comes after Musk sued Altman, Brockman, OpenAI, and other affiliates last week, alleging that the ChatGPT-maker had breached its original contractual agreements by pursuing profits instead of adhering to the nonprofit’s founding mission to develop AI that benefits humanity. According to Musk, OpenAI was founded to serve as a counterweight to Google.
Musk claimed that OpenAI’s founding agreement required the startup to make its technology “freely available” to the public, but the firm had gradually shifted its priories to maximizing profits for Microsoft.
High Stakes and Industry-Wide Implications
The high-profile legal battle between Musk and OpenAI could have far-reaching implications for the future of AI. As the most valuable AI startup, with a valuation exceeding $80 billion, OpenAI’s success with ChatGPT has ignited an unprecedented AI race since its public release in late 2022. The outcome of this lawsuit could significantly influence the direction and pace of AI development, as well as the balance of power among key players in the industry.
The Transition to a For-Profit Model
In its blog post, OpenAI asserted that as it recognized the vast computational resources necessary to develop artificial general intelligence (AGI) – an AI system with human-level or superior intelligence – it became evident that the annual costs would amount to billions of dollars. This realization led to the understanding that transitioning to a for-profit structure was essential to secure the required funding and resources.
Diverging Paths and Disagreements
“As we discussed a for-profit structure in order to further the mission, Elon wanted us to merge with Tesla or he wanted full control.
According to OpenAI, this is when disagreements began between Musk and the other co-founders. The blog post includes five email exchanges between Musk and OpenAI executives, with one excerpt stating: “As we discussed a for-profit structure in order to further the mission, Elon wanted us to merge with Tesla or he wanted full control. Elon left OpenAI, saying there needed to be a relevant competitor to Google/DeepMind and that he was going to do it himself. He said he’d be supportive of us finding our own path.”
Another excerpt reveals Musk’s suggestion: “In early February 2018, Elon forwarded us an email suggesting that OpenAI should ‘attach to Tesla as its cash cow’, commenting that it was ‘exactly right… Tesla is the only path that could even hope to hold a candle to Google.'”
Reaffirming the Mission and Global Impact
OpenAI maintained that its mission is to ensure AGI benefits all of humanity, which includes developing safe and beneficial AGI while promoting widespread access to its tools. The startup highlighted that its technology is being utilized in places like Kenya and India to empower people and improve their daily lives.
“We’re sad that it’s come to this with someone whom we’ve deeply admired — someone who inspired us to aim higher, then told us we would fail, started a competitor, and then sued us when we started making meaningful progress towards OpenAI’s mission without him,” the company wrote in the blog post.
Addressing the Open-Source Accusation
In response to Musk’s accusation of OpenAI abandoning its open-source principles, the Microsoft-backed startup emphasized that Musk had been aware of and agreed to the eventual shift away from complete transparency as the organization made significant progress in its AGI development.
OpenAI provided an email exchange between Musk and Ilya Sutskever, which stated: “As we get closer to building AI, it will make sense to start being less open. The Open in openAI means that everyone should benefit from the fruits of AI after its built, but it’s totally OK to not share the science…’, to which Elon replied: ‘Yup’.”
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