"Never give up! Musk's lawsuit against OpenAI enters the countdown to the court session: demands to dismiss Ultraman and claim over one trillion dollars"
As legal challenges against OpenAI's transformation into a for-profit company enter a crucial stage, Elon Musk is seeking to oust the CEO Sam Altman and President Greg Brockman of the artificial intelligence startup.
As the legal challenge against OpenAI's transformation into a for-profit company enters a critical stage, Elon Musk is seeking to remove the CEO Sam Altman and President Greg Brockman of the artificial intelligence startup.
In a court filing submitted on Tuesday, Musk stated that his lawsuit aims to "reverse OpenAI's transformation and restructuring into a for-profit company," which would involve removing Altman and Brockman from their leadership positions. He also seeks a court order to restore the company's non-profit research organization status. Musk also stated in the filing that if he were to receive any compensation in the jury trial against Altman and OpenAI later this month, he would like to donate the damages to the startup's charity division.
The filing states, "The remedies Musk seeks are strictly focused on the purpose of this lawsuit - to prevent a public charity - an organization he co-founded and was a major supporter of in its early days - from being placed under private gain and profit."
On Tuesday, OpenAI responded on social media, calling Musk's lawsuit "nothing more than a harassment action driven by hubris, jealousy, and an intent to slow down competition." Meanwhile, OpenAI's Chief Strategy Officer Jason Kwon called on the Attorneys General of California and Delaware on Monday to investigate Musk's alleged intentional interference with OpenAI. OpenAI claimed that Musk has repeatedly attempted to interfere with the company's operations, labelling his actions as "anti-competitive."
Previously, Musk had filed lawsuits against OpenAI and Microsoft Corporation (MSFT.US) and initiated a claim of up to $134 billion. This highly publicized legal dispute stems from early 2024 when Musk sued OpenAI and Altman, alleging a violation of the company's initial non-profit commitment. Musk claimed that he had donated approximately $38-50 million to OpenAI between 2016 and 2020 and provided significant non-monetary support, based on OpenAI's explicit commitment to maintaining a non-profit structure and placing technology in a public trust.
Founded in 2015 by Musk, OpenAI's original purpose was to advance open-source artificial intelligence development to achieve general AI (AGI) for the benefit of all mankind. However, in 2019, OpenAI transitioned to a "capped profit" structure and subsequently entered into a deep collaboration with Microsoft Corporation - with Microsoft Corporation investing billions and becoming one of its largest shareholders. In February of last year, OpenAI rejected Musk's non-invitation offer of $97.4 billion to buy control of the non-profit organization's assets. Months later, the company completed its for-profit restructuring plan, paving the way for raising more funds and a possible IPO.
Musk believes that OpenAI's subsequent structural adjustments (including the introduction of massive investments, plans for an IPO, etc.) constitute fraud and breach of contract, harming the founding mission. In the lawsuit, he accuses OpenAI and Microsoft of constructing an "opaque for-profit network of affiliated companies," concentrating technology and decision-making power in a few entities.
OpenAI adamantly denies these accusations, stating that since 2019, the company has transitioned from a non-profit model to a public benefit corporation (PBC) to support expensive R&D expenses. OpenAI also pointed out that Musk's lawsuit is a "persistent harassment" driven entirely by commercial motives, as Musk has founded a direct competitor, xAI.
The case is currently in a fierce pre-trial stage. In January of this year, a U.S. judge ruled that Musk's core claim against OpenAI's deviation from its non-profit mission could proceed to a jury trial. At a pre-trial hearing on March 14th, the presiding judge expressed skepticism about the $134 billion claim calculation, calling it "akin to an invention out of thin air," but rejected OpenAI's motion to exclude expert witness testimony, ruling that the jury would have the power to assess the evidence.
It is reported that the case is scheduled to begin the jury selection process in federal court in Oakland, California on April 27th, with a trial set for April 28th in Oakland, California.
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