OpenAI Counters Elon Musk Lawsuit: Reveals He Pushed for For-Profit Model
In a dramatic escalation of their legal battle, OpenAI has publicly challenged Elon Musk’s lawsuit by releasing a trove of emails and texts that allegedly show Musk advocated for a for-profit structure—contradicting his current claims.
The Core of the Legal Dispute
Elon Musk’s ongoing lawsuit accuses OpenAI of abandoning its nonprofit mission to democratize AI research. The conflict intensified recently when Musk sought an injunction to block OpenAI’s transition to a for-profit corporation.
OpenAI’s response? Musk’s allegations are “baseless” and stem from resentment after his proposals were rejected.
What the Emails Reveal
Key revelations from OpenAI’s published correspondence:
- 2015 Discussions: Musk reportedly proposed a hybrid nonprofit/for-profit structure for OpenAI from the outset.
- 2017 Proposal: Musk suggested merging OpenAI with a hardware startup (potentially Cerebras) to create an “AI research + hardware for-profit” entity.
- Demands for Control: Musk allegedly sought:
- 50-60% majority equity
- CEO position
- “Unequivocal initial control” of the company
When OpenAI rejected these terms, Musk created “Open Artificial Intelligence Technologies, Inc”—a public benefit corporation registered in Delaware.
The Tesla Proposal and Aftermath
After his initial plans were rejected, Musk proposed:
- Spinning OpenAI into Tesla with a $1 billion budget
- Promising exponential funding increases
OpenAI leadership declined again, leading to Musk’s 2018 resignation and severed ties with the organization.
OpenAI’s Current Stance
“You can’t sue your way to artificial general intelligence,” OpenAI stated, adding:
- They’ve offered Musk equity in their for-profit wing multiple times
- Musk has consistently declined
- They believe competition should happen in the marketplace, not the courtroom
The Broader AI Landscape
Musk launched xAI in 2023 as his OpenAI alternative, which:
- Developed Grok AI model
- Powers features on X (formerly Twitter)
- Offers API access for third-party integration
Despite Musk’s claims that OpenAI is stifling competition, xAI recently:
- Raised $6 billion in funding
- Reached a $50 billion valuation
- Attracted major investors like Andreessen Horowitz and Fidelity
Regulatory Scrutiny and Business Pressures
The dispute has drawn wider attention:
- Google has reportedly called for investigations into Microsoft’s relationship with OpenAI
- OpenAI faces pressure to complete its for-profit transition within two years to satisfy investor agreements
This high-profile clash between two AI giants continues to unfold, with significant implications for the future of artificial intelligence development and governance.
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