March 03, 2024

Elon Musk Sued OpenAI and Sam Altman for Breaking Founding Agreement

Elon Musk has helped found the OpenAI. Now, Musk is suing OpenAI and its CEO Sam Altman with the allegation that OpenAI is breaching the contract.

Elon Musk’s lawsuit against OpenAI and Sam Altman also displays the feud between tech giants.

In the past few months, things were difficult for Sam Altman as he was fired from OpenAI and later regained his position as CEO.

Now this new lawsuit is going to put another burden on AI company OpenAI and CEO Sam Altman.

Elon Musk Sued OpenAI and Sam Altman for Breaking Founding Agreement: eAskme
Elon Musk Sued OpenAI and Sam Altman for Breaking Founding Agreement: eAskme

Elon Musk Lawsuit Against OpenAI and Sam Altman:

According to Musk, the original goal of OpenAI was to create an open-source, non-profit AI. But OpenAI partnership with Microsoft is hiding secrets.

Microsoft is investing billions of dollars in OpenAI. This investment can benefit Microsoft as OpenAI maybe secretly develop a best in-class AI for Microsoft.

Elon Musk supported OpenAI because of its non-profit and open-source goals.

Now the company is shifting its priorities to satisfy investors.

Elon Musk Lawsuit and OpenAI:

Elon Musk has been talking about the threats of AI. He claimed that OpenAI moved from an open-source path to closed-source path to for-profit its investors. OpenAI is developing AGI for Microsoft.

Elon Musk asked in his lawsuit that OpenAI should make its research public. Sam Altman should refund the money gained with alleged practices.

Musk also said that he has invested $44 million in OpenAI.

OpenAI response is that OpenAI founders has discussed the for-profit AI with Elon Musk during its early stage. But Elon wants total control.

Elon Musk and Sam Altman Feud:

Elon Musk and Sam Altman feud started years ago when Musk and Altman clashed over control and profit. In 2018, Elon Musk left the co-founding role.

His investments in OpenAI also decreased or slowed down.

Microsoft and OpenAI:

Microsoft is the biggest investor in OpenAI.

Microsoft already invested $13 billion to get 49% share in OpenAI. This step has raised the eyebrows of many who believed that OpenAI is a non-profit organization.

Sam Altman Fired the OpenAI Board:

In December 2023, OpenAI board fired Sam Altman. Later, Sam Altman came back as CEO and replaced the old OpenAI board of members with the new.

Elon Musk believes that new board members are incapable of dealing with AI technology and the future.

There are also issues related to Sam Altman communications with the board.

Sam Altman and Jason Kawon also made comment in email saying that Elon is coming with a lawsuit because he is not the part of OpenAI.


Elon Musk-OpenAI-Sam Altman lawsuit is making headlines because the biggest tech giants are fighting a court battle over AI.

Where Elon Musk claimed that he wants OpenAI to stay non-profit, OpenAI board is making the company for-profit for its investors.

More is coming!

Stay tuned with us.

Don't forget to join the eAskme newsletter to stay tuned with us.

Other handpicked guides for you: