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Elon Musk, billionaire entrepreneur and founder of Tesla and SpaceX filed a lawsuit Thursday against Sam Altman and OpenAI, claiming the company has abandoned the organization's original nonprofit goals. And is prioritizing profit over humanity.

 Musk claims that OpenAI, once dedicated to developing artificial intelligence (AI) for the betterment of humanity, has deviated from its mission under the leadership of Altman. And it is now favoring profit-driven partnerships, notably with Microsoft.

Musk's legal action claims that OpenAI, which he co-founded in 2015 alongside Altman and Greg Brockman, has become a closed-source subsidiary of Microsoft.

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Profit over Humanity

The lawsuit contends that rather than advancing AI for the greater good, OpenAI has shifted its focus towards refining Artificial General Intelligence (AGI) algorithms for Microsoft's financial gain. 

Musk's lawyers argue that this transition contradicts the founding principles of OpenAI as a nonprofit organization. "Under its new board, it is not just developing but is refining an AGI to maximize profits for Microsoft, rather than for the benefit of humanity."

"It isn't clear to me how the OpenAI structure is legal at all," Musk wrote on X last month. He added that was offered shares at "various points, but it seemed unethical/illegal to accept them."

The lawsuit quotes OpenAI's founding agreement.

"Resulting technology will benefit the public and the corporation will seek to open-source technology for the public benefit when applicable. The corporation is not organized for the private gain of any person."

According to the lawsuit, Musk played a pivotal role in establishing OpenAI, contributing substantial financial resources and persuading key personnel to join the initiative.

His intention was to support a nonprofit endeavor dedicated to AI development with altruistic motives.

The lawsuit claims Musk played a central role in establishing the company. He contributed $44 million between 2016 and 2020. He paid for office space. And also convinced key team members to join the company.

The lawsuit alleges that Musk's contributions were manipulated to serve the interests of OpenAI and its corporate partners, particularly Microsoft.

OpenAI's corporate structure has come under scrutiny, with its nonprofit arm initially designed to oversee the organization's ethical and humanitarian objectives. 

Altman is reinstated

However, recent events, including Altman's brief removal as CEO followed by a swift reinstatement amid Microsoft's strategic hires, have raised questions about the nonprofit's autonomy. 

Nicolas Moës, executive director of the Future Society, a think tank explains that “The nonprofit is in theory controlling the for-profit [side of the company].” 

Altman has supported that setup in public. In June he told Bloomberg that “The board can fire me; I think that’s important.” 

Yet when the board did fire him in November, Altman didn’t accept the decision.

He was reinstated as CEO after five days. And he announced a new “non-voting” board seat for Microsoft.

The Rainforest Metaphor

According to Moës, “The board crisis of OpenAI in November showed that this nonprofit [side of the business] has basically no say, is in complete disarray, and the board itself is not really in control of what the for profit does.” 

Critics argue that OpenAI's for-profit endeavors overshadow its nonprofit mission.

In response to Musk's lawsuit, OpenAI has defended its hybrid model, which includes both for-profit and nonprofit entities.

 The organization maintains that this structure allows for sustainable growth while still upholding its philanthropic goals. And it will not favor profit over humanity.

OpenAI asserts that any financial gains from its for-profit activities will ultimately benefit its nonprofit initiatives, ensuring continued research and development in AI for society’s benefit.

The legal dispute between Musk and OpenAI underscores broader concerns regarding the ethical governance of AI technologies and the potential consequences of prioritizing profit over ethical considerations. 

“Imagine donating to a nonprofit whose asserted mission is to protect the Amazon rainforest, but then the nonprofit creates a for-profit Amazonian logging company that uses the fruits of the donations to clear the rainforest,” the lawsuit states. “That is the story of OpenAI, Inc.”