Elon Vs OpenAI Continues

As a seasoned crypto investor and tech enthusiast with a keen eye for spotting potential anticompetitive practices, I find the ongoing saga between Elon Musk, OpenAI, Microsoft, and LinkedIn co-founder Reid Hoffman intriguing. My life experience has taught me that when big players like Microsoft invest billions in an AI company, it’s worth paying attention to the potential implications for competition and innovation in the industry.


The updated lawsuit, submitted on Thursday, now includes Microsoft, LinkedIn co-founder Reid Hoffman, and Microsoft’s Vice President Dee Templeton (formerly of OpenAI’s board) as defendants.

Since 2019, Microsoft has poured $14 billion into OpenAI, gaining exclusive commercial licensing rights for OpenAI’s technology and acquiring a 49% share in its profitable offshoot. As per Musk’s legal team’s argument, the former CEO of OpenAI, Sam Altman, was involved in excessive self-dealing, essentially merging OpenAI with Microsoft on paper to foster anticompetitive practices.

The legal claim asserts that OpenAI and Microsoft are collaborating to suppress competition by disclosing confidential details and exerting influence on investors to withhold financial support from competing firms, notably Elon Musk’s AI initiative, xAI. In the cutthroat AI industry, OpenAI garnered $6.6 billion in October to enhance its cutting-edge AI models, while xAI managed to secure $6 billion in March to boost its technological progress.

Furthermore, xAI has joined the legal action as one of the parties, along with Shivon Zilis – a board member from OpenAI’s past and currently an employee at Elon Musk’s Neuralink, who also happens to be the mother of three of his kids.

In 2015, Elon Musk joined forces with Sam Altman and Greg Brockman to establish OpenAI, but he parted ways in 2018. Earlier this year, he brought a lawsuit against OpenAI, alleging that the organization had deviated from its original purpose of creating AI for human benefit, instead turning into a profit-centric entity under Microsoft’s influence. However, this legal action was withdrawn without providing any reasons in June.

He has published a series of tweets taking aim at Open AI CEO Sam Altman.

In August, Musk reinstated the legal action with comparable accusations. OpenAI has persistently attempted to discard these allegations, characterizing them as a “publicity stunt” and increasingly “boisterous.

 

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2024-11-17 17:02