Elon Musk Proceeds With Lawsuit Against OpenAI

Tesla CEO Elon Musk is set to go ahead with the lawsuit against OpenAI, his lawyer Marc Toberoff said on May 5. This comes after the AI startup stepped back from its earlier plan to remove control by its non-profit arm. Under the new plan, its non-profit parent will continue to handle business operations and become a major shareholder.

“Nothing in today's announcement changes the fact that OpenAI will still be developing closed-source AI for the benefit of Altman, his investors, and Microsoft,” Toberoff said in a statement. “The announcement obscures critical details about the supposed ‘non-profit control’ arrangement, and particularly the sharply reduced ownership stake the non-profit will receive in Altman's for-profit enterprise.”

Musk continued his legal battle in court to block OpenAI's transition from its non-profit control, taking the high-profile company he co-founded and now competes with into a lengthy legal fight. Other big companies such as Meta and prominent figures, including Nobel Prize laureate Geoffrey Hinton have criticised OpenAI’s restructuring plans.

“Elon continuing with his baseless lawsuit only proves that it was always a bad-faith attempt to slow us down,” a spokesperson for OpenAI said in a statement.