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Elon Musk’s Legal Challenge Against OpenAI: Allegations of Closed-Source AI and Breach of Commitments

In a surprising legal move, Elon Musk has leveled serious accusations against OpenAI, claiming a departure from their commitment to openness following the release of a closed-source AI product. Musk alleges that both Sam Altman, the CEO of OpenAI, and the organization itself have violated their founding agreement, which initially aimed to develop technology for the betterment of humanity rather than for profit.

OpenAI’s Alleged Transformation and Violation of Founding Principles

Musk contends that OpenAI has effectively transformed into a subsidiary operating with closed-source code, aligning itself with the world’s largest technology company, Microsoft. Under the new leadership, Musk argues that the focus has shifted from prioritizing the well-being of humanity to enhancing artificial intelligence solely for the purpose of maximizing investor profits.

Call for Open Source: Musk Demands a Return to Founding Principles

In response to these concerns, Musk demands a return to open-source code and takes a step further by urging a ban on the defendants—Microsoft, OpenAI, its President Gregory Brockman, and CEO Sam Altman—from profiting from the AI technologies developed by the firm.

GPT-4: A Revolutionary AI, Now Closed-Source

OpenAI’s primary objective was to develop a general artificial intelligence capable of autonomous operation at a cognitive level comparable to humans. Musk asserts that this goal has been achieved with the release of GPT-4 in March 2023. However, contrary to the open nature of previous iterations, GPT-4 remains closed-source. Musk alleges that this decision is driven more by commercial considerations than by a commitment to the interests of humanity.

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CEO Transition and Board Composition: Musk Highlights Leadership Dynamics

Musk also draws attention to the CEO transition at OpenAI in 2023, specifically the dismissal and subsequent reinstatement of CEO Sam Altman. According to Musk, Altman’s removal prompted Microsoft to intervene, resulting in the resignation of board members. Musk criticizes the current board for lacking individuals with a deep understanding of technology, particularly scientists and researchers.

Market Impact: WLD Token and Worldcoin Project

The legal action initiated by Musk has had a direct impact on the market, particularly affecting the Worldcoin (WLD) token associated with Altman’s other project, Worldcoin. CoinGecko reports a 5.2% decrease in the token’s value in the last 24 hours, trading above $7.5 at the time of writing.

The Broader Legal Landscape: OpenAI Faces Lawsuit from The New York Times

This legal battle follows another lawsuit against OpenAI and Microsoft filed by The New York Times. In response, ChatGPT’s developer accused the publication of evidence fabrication and “hacking” its chatbot, adding further complexity to the unfolding narrative.*

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