Elon Musk vs. OpenAI: The Legal Feud Returns

Elon Musk has reignited his legal battle with OpenAI and its CEO, Sam Altman, by filing a new lawsuit on August 5 in California. This follows Musk's earlier decision to drop a similar case in June.

Musk, who co-founded OpenAI with Altman in 2015, initially sued the organization in February, accusing it of abandoning its nonprofit roots. He temporarily withdrew his lawsuit after OpenAI released a blog post that included some of his private communications.

In his latest legal filing, Musk accuses Altman of manipulating him into supporting OpenAI under the guise of it being a nonprofit. Musk claims he invested heavily in terms of time, money, and recruitment efforts, only for Altman to later pivot the organization towards profit-making.

OpenAI’s March blog post included emails suggesting Musk was aware of, and even supported, this shift. It stated that both parties recognized the necessity of a for-profit model to secure the resources needed for developing advanced AI.

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Despite this, Musk has since become a critic of OpenAI, condemning it as a “closed source, maximum-profit company effectively controlled by Microsoft” in a 2023 post on his social media platform, X.

Meanwhile, X is reportedly under investigation by Irish regulators due to allegations that user data might have been used to train Musk’s AI chatbot, Grok.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.