to leave a comment.
Musk's side claims in court: "It's like a souvenir shop selling off a museum's Picasso works"
OpenAI: "Musk was aware of the plan to change to a for-profit entity"... MS: "Suddenly raising issues due to ChatGPT's success"
Elon Musk, Tesla CEO, who filed a lawsuit alleging that Sam Altman, OpenAI CEO, broke his promise of 'non-profit operation' and unjustly profited, claimed that this trial is 'a fight to protect America's culture of philanthropy.'
Reuters and U.S. business channel CNBC reported that CEO Musk, dressed in a suit, appeared as the first witness in a trial held on the 28th (local time) at the Oakland branch of the U.S. District Court for the Northern District of California, claiming, "I came up with the idea, named (OpenAI), recruited key talent, and taught everything I knew."
He testified that he conceived the idea of establishing OpenAI after debating AI safety with Google co-founder Larry Page, and wanted to create an open-source alternative that could challenge Google.
He, who often thinks about AI safety, explained the background behind his conception of OpenAI, stating, "AI can enrich us, or it can kill us all," and "We want to live in a movie like 'Star Trek' produced by Gene Roddenberry, not in a movie like James Cameron's 'Terminator' (which features killer robots)."
He also offered a prediction, saying, "My prediction is that AI as intelligent as humans will emerge next year."
He then emphasized, "I could have started (OpenAI) as a for-profit company, but I chose not to."
He described OpenAI becoming a for-profit company, not adhering to his original intention of 'operating as a non-profit,' as 'plunder,' and warned, "If it's okay to plunder a public interest organization, the entire foundation of American charitable giving will be destroyed."
Attorney Steven Mollo, representing Musk, also emphasized in his opening statement that the defendants, including CEO Altman and OpenAI President Greg Brockman, should be held accountable because they stole a charitable organization.
Attorney Mollo criticized the OpenAI Foundation, a non-profit organization, for establishing OpenAI Public Benefit Corporation (PBC), which can pursue profit, likening it to a museum opening a souvenir shop, stating, "A souvenir shop cannot plunder a museum and sell off Picasso's works."
Musk's side presented as evidence the fact that OpenAI's founding charter, drafted in 2015, explicitly states that OpenAI seeks to develop 'open technology for the public good' and 'is not established for the private benefit of specific individuals.'
Conversely, attorney William Savitt, representing OpenAI, countered that CEO Musk was originally aware of OpenAI's plan to transition to a for-profit entity.
Attorney Savitt made this claim based on an email sent by Shivon Zilis, a former OpenAI director who is also the mother of four of Musk's children, to Sam Teller, who worked for Musk.
The email suggested options such as changing the organizational structure to a PBC that can pursue profit, or dividing it into a general stock company and a non-profit organization.
Attorney Savitt claimed, "Musk supported the for-profit entity as long as he maintained control."
He further pointed out that CEO Musk only donated a portion of the funds he initially promised, forcing OpenAI to hastily seek additional funding.
Attorney Russell Cohen, representing Microsoft (MS), another defendant in this lawsuit, countered that he neither helped nor could have helped with OpenAI's alleged breach of public trust, as claimed by CEO Musk.
Attorney Cohen specifically criticized that CEO Musk made no mention of this for five years after MS and OpenAI announced their partnership, stating, "After ChatGPT achieved great success, he established xAI, a for-profit (competing) company, and only then suddenly raised issues regarding MS."
Meanwhile, Judge Yvonne Gonzalez Rogers, who is presiding over this lawsuit, unusually ordered CEO Musk to refrain from using social networking services (SNS).
When OpenAI raised an issue regarding CEO Musk's post the previous day, which mocked the names of CEO Altman and OpenAI President Greg Brockman by calling them 'Scam' (fraud) and 'Stockman' (stock man), Judge Rogers asked CEO Musk to "try to curb the habit of using SNS to resolve matters outside of court."
However, he said he was reluctant to issue a 'gag' order.
In response, CEO Musk agreed to minimize his SNS activity, and CEO Altman also agreed to participate.
Earlier, Judge Rogers announced that this trial would proceed in two phases: one to determine whether the defendants are liable, and another to decide the remedies, with the first phase expected to conclude by the 21st of next month.
CEO Musk filed a lawsuit against Altman, Brockman, OpenAI, and Microsoft (MS), which funded OpenAI, claiming that he suffered damages when OpenAI broke its promise to operate as a non-profit and became a for-profit company, and that CEO Altman and President Brockman unjustly profited in the process.
In this lawsuit, CEO Musk is demanding the dismissal of CEO Altman and President Brockman and the return of $134 billion (approximately 198 trillion won) in unjust profits to the OpenAI Foundation, a non-profit organization.
In this trial, CEO Altman, Microsoft CEO Satya Nadella, and former OpenAI director Zilis are also expected to testify.
Newsletter
Get key news delivered to your email every morning
to leave a comment.