Elon Musk's $100 Billion Lawsuit Could Cripple OpenAI's Nonprofit Mission, ChatGPT Parent Asks California, Delaware AGs To Investigate

On Monday, OpenAI asked California Attorney General Rob Bonta and Delaware Attorney General Kathy Jennings to analyse Elon Musk and his associates, alleging "improper and anti-competitive behavior."

In a missive sent to the lawyer generals, OpenAI warned that Musk's lawsuit—seeking much than $100 cardinal successful damages—could cripple its nonprofit foundation, Reuters reported.

Musk, who co-founded ChatGPT-parent successful 2015 and departed successful 2018, sued OpenAI and its CEO, Sam Altman, in 2024.

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He claimed that the enactment abandoned its archetypal ngo of processing artificial quality for the payment of humanity arsenic it transitions toward a for-profit structure.

Musk present leads rival AI steadfast xAI, which competes straight with OpenAI with a level Grok.

OpenAI's main strategy officer, Jason Kwon, argued successful the missive that Musk's ineligible actions whitethorn beryllium driven by competitory interests alternatively than principle.

Musk's filings suggest that "your offices did not ⁠thoroughly analyse ​OpenAI’s plan," Kwon wrote, adding that regulators whitethorn person "relied connected promises astir what OpenAI volition bash successful the future."

OpenAI did not instantly respond to Benzinga's petition for comments.

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Last year, successful an August tribunal filing, OpenAI said Musk attempted to bring rival Mark Zuckerberg into a consortium bid for the company, but the Meta Platforms, Inc. CEO yet declined to participate.

At the time, Meta spokesperson Andy Stone highlighted a information of OpenAI's filing stating that neither Meta nor Zuckerberg signed Musk's missive of intent.

Meta successful 2024 contended that OpenAI should not repurpose assets created nether its nonprofit operation for backstage profit.

A justice successful Oakland, California, ruled successful January that the lawsuit volition proceed to a assemblage proceedings expected to statesman this month.

The improvement follows OpenAI's announcement that it closed a $122 cardinal backing round, lifting its post-money valuation to $852 billion, with backing from investors including Nvidia Corp and SoftBank Group.

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