Musk, Despite OpenAI's Conversion To Non-profit, "Closed AI Development Continues"…Lawsuit Ongoing
Elon Musk Tesla CEO and Sam Altman OpenAI CEO (Source: AFP)
OpenAI announced its decision to withdraw its plan to convert into a for-profit corporation and maintain the public benefit corporation structure, but Elon Musk still insists that they are continuing to develop closed-type AI and will not withdraw his lawsuit.
According to Bloomberg and other foreign media on the 6th (local time), Musk's attorney Marc Toberhoff said in a statement, "OpenAI's announcement does not change the essence of closed AI development for the benefit of Sam Altman CEO, investors, and Microsoft." He criticized, "Core elements such as non-profit control rights or equity structure have been handled opaquely, and this is merely a change of packaging without substantial change."
OpenAI announced the previous day that the non-profit organization still maintains control over the entire business structure and will be reorganized into a public benefit corporation (PBC) form. PBC is a corporate structure that can generate profits while bearing public responsibility, and OpenAI aims to secure both non-profit nature and market competitiveness through this.
However, Musk's side did not accept this. Toberhoff argued, "The structure in which charitable assets can be transferred to Altman and his investors is still a problem, and this announcement obscures the essence while hiding key issues."
Musk filed a lawsuit against Altman CEO and OpenAI last year, claiming that OpenAI violated the non-profit principles promised at its founding and prioritized contracts with external investors like Microsoft. OpenAI requested dismissal of the lawsuit, but the Federal Court in California did not accept it, and the trial is scheduled for March next year.
In response, OpenAI argued that Musk's lawsuit is meaningless and obstructive. A spokesperson said, "By continuing to make baseless claims, Musk is ultimately demonstrating that this lawsuit is malicious."