The public did not wait long for a more exciting trial of technological "heavyweights". Tesla boss showdown Ilona Maska and CEO of OpenAI Sam Altman has the potential to grow into courtroom drama which could fundamentally change the rules of the game in the artificial intelligence industry. Former collaborators, and now bitter rivals and Silicon Valley "celebrities" of sorts, found themselves on opposite sides in a process revolving around accusations of betrayal, deception and ambitions that destroyed their shared vision of developing AI technology.
Accusations of "treason" and desertion
In federal court in Oakland, California, a lawsuit has been filed against OpenAI. At the heart of the dispute are Musk's claims that the company has abandoned its original, non-profit mission. He accuses Sam Altman and OpenAI co-founder and president Greg Brockman of abandoning the idea of developing artificial intelligence for the benefit of humanity and moving to a profit-driven model, particularly through a close partnership with Microsoft.
This dispute goes back to when Musk was one of the founders of OpenAI, before he left the board of directors in 2018 due to disagreements over the direction of development. Musk claims he was misled while securing initial funding and resources, believing the organization would remain open source and without commercial ambitions. The media write that he stated that his initial stake of 38 million dollars represented more than 60 percent of the initial funding of the OpenAI company, which ensured the credibility of the project and enabled the hiring of key personnel.
On the other hand, OpenAI - a company worth over 850 billion dollars today - and Sam Altman categorically reject these accusations, pointing out that the transformation into a profit model was "necessary" to survive in the race to develop the most advanced technology today. Also, they emphasize that Elon Musk has a business interest in conducting this lawsuit, because today he runs a competing company, xAI, and that his lawsuit is just an attempt to weaken his rival.
Billions at stake
According to analysts, the outcome of the process could significantly determine the future of the industry. If Musk wins, OpenAI could face restructuring or huge financial liabilities. The compensation is estimated at a dizzying 79 to 134 billion dollars, and the head of Tesla has already announced that he would completely donate that money to humanitarian purposes.
If Altman wins, OpenAI would strengthen its existing "hybrid" business model and cement its position as a market leader. Today, this company generates over two billion dollars in monthly revenue, which represents a significant increase compared to previous years.
One of the most serious pieces of evidence in this court case is an entry from Greg Brockman's personal diary from 2017: "I can't believe we committed to a non-profit model, if three months later we're transitioning to a b-corporation (that is, a for-profit company with a social mission, UM) – then it was a lie," says Brockman's notes verbatim.
Testimonies, correspondence and emails
Although the court dismissed the fraud charges at Musk's request, key points – such as breach of fiduciary duty and unjust enrichment of the company – remain in focus. The biggest names in the tech world are expected to testify, including Microsoft CEO Satya Nadella and a number of former and current OpenAI executives. Their statements, along with internal emails and messages, could reveal what really happened behind the scenes of the founding of this company in 2015.
The case also directly affects Microsoft, which has invested over $13 billion in Sam Altman's company since 2019 and currently holds about 27 percent of OpenAI. While the legal battle of the most expensive lawyers and legal teams of both sides is gaining intensity, the attention of the world public is directed towards the courtroom in California. Regardless of the final verdict, this process will expose the inner workings of today's most famous AI company and perhaps permanently change the way innovation is managed in the future.
Real journalism costs money, and we will not be bought by tycoons and corporations. Support us with a one-time or monthly donation. The time for it is now!