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OpenAI and Elon Musk keep trading barbs. Meanwhile, trust in AI is fading
The AI startup says Musk is sore about the success it’s achieved without him.

OPENAI FIRES BACK AT ELON MUSK OVER LAWSUIT
In Elon Musk’s breach of contract lawsuit filed late last month against OpenAI, the billionaire raises a fair question: Why does OpenAI, a nonprofit entity, act so much like a for-profit one?
Since the public launch of ChatGPT—and the ensuing mania around the tech—OpenAI has raced to release a stream of improvements to its large language models (LLMs). The company has amped up its lobbying efforts in Washington and doubled the size of its PR operation over the past year. Musk is particularly concerned about OpenAI’s practice of treating its research as intellectual property to be hidden away as a business asset, including from the wider research community.
OpenAI started out as a nonprofit and later adopted an unusual corporate structure in which a nonprofit board was granted oversight of its for-profit business. Despite the turmoil around CEO Sam Altman’s firing and rehiring in November and the growing calls for the company to dissolve the nonprofit, that structure has remained in place.
“Imagine donating to a non-profit whose asserted mission is to protect the Amazon rainforest, but then the non-profit creates a for-profit Amazonian logging company that uses the fruits of the donations to clear the rainforest. That is the story of OpenAI, Inc.,” the lawsuit says.
Key to the lawsuit—and to OpenAI’s arguments in favor of its for-profit arm—is the company’s pursuit of artificial general intelligence (AGI), or AI models with superior intelligence to humans over a broad range of tasks.
OpenAI countered in a blog post published Tuesday that its for-profit entity is needed in order to raise enough capital to pursue AGI. “In early 2017, we came to the realization that building AGI will require vast quantities of compute,” company executives wrote. ”We all understood we were going to need a lot more capital to succeed at our mission—billions of dollars per year, which was far more than any of us, especially Elon, thought we’d be able to raise as the non-profit.”
But Musk, in his lawsuit, says AGI is itself a dangerous goal. “[W]here some like Mr. Musk see an existential threat in AGI, others see AGI as a source of profit and power,” the lawsuit states.
OpenAI, for its part, claims Musk knew that restricting access to the models was part of the plan. “Elon understood the mission did not imply open-sourcing AGI,” the blog post reads. “As Ilya told Elon: ‘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 it’s built, but it’s totally OK to not share the science…’, to which Elon replied: ‘Yup.’” OpenAI says it has stayed true to its mission of letting the many, not the few, benefit from AI by putting tools like ChatGPT into the hands of consumers.
Promoters of open-source believe that the best way to understand and manage the risks (including bias) in large frontier models is by giving the research community access to the models’ blueprints. OpenAI says in the blog that it will “move to dismiss all of Elon’s claims” in court.