Elon Musk drags OpenAI into federal court

Here we go again. Elon Musk has filed another lawsuit against OpenAI and the company’s CEO Sam Altman, two months after withdrawing a previous one. Musk once again alleges that OpenAI breached its founding commitments by putting commercial concerns ahead of the public good.

This time around, though, the suit has been filed in federal court rather than in a state court. That’s because the new filing alleges that OpenAI violated federal racketeering laws by conspiring to defraud Musk, according to his lawyer, Marc Toberoff. “The previous suit lacked teeth — and I don’t believe in the tooth fairy,” Toberoff told The New York Times. “This is a much more forceful lawsuit.”

The latest suit claims that Altman and fellow OpenAI founder Greg Brockman knowingly misled Musk when the trio (and others) formed the company. It alleges that Altman and Brockman walked back on their pledge to open source OpenAI’s tech by instead granting Microsoft an exclusive license to it. Microsoft has invested billions of dollars into OpenAI’s for-profit subsidiary and holds a 49 percent stake (the FTC is said to be investigating those business dealings).

Furthermore, Musk has asked the court to determine whether OpenAI has achieved artificial general intelligence (AGI), a form of AI that’s the equivalent of a human brain. Altman said in January that AGI could be developed in the “reasonably close-ish future.”

Per the suit, Microsoft’s contract with OpenAI stipulates that once the latter has reached AGI, it can no longer use the company’s tech. If OpenAI has reached AGI in the eyes of the court, then its pact with Microsoft should be declared null and void, according to the filing.

Musk filed the original suit in February. He withdrew it in June, one day before a judge was set to rule on OpenAI’s request to dismiss it, but did not provide a reason for doing so.

In a response to the original suit, which it claimed was “incoherent,” OpenAI says it aimed to serve the public good by creating AGI. It claims that it needed far more resources than initially thought to do so. The company added that it (and Musk) agreed that a for-profit arm was required to accrue enough resources. However, the parties disagreed on how to go about this, according to OpenAI. The company said Musk wanted full control or for OpenAI to merge with Tesla. Musk ultimately left OpenAI and eventually went on to start his own AI company, xAI.