Musk, a co-founder of OpenAI who departed in 2018, argues that this shift violates the organization’s original mission to develop artificial intelligence for the public good. He contends that OpenAI’s partnership with Microsoft has led to anticompetitive practices, enabling them to dominate nearly 70% of the generative AI market.

Source: X

Musk’s legal team asserts that OpenAI’s evolution into a “for-profit behemoth” is marked by “flagrant breaches of its charitable mission and rampant self-dealing.” They claim that exclusive arrangements with Microsoft have stifled competition and limited access to investment capital for other AI ventures, including Musk’s own AI startup, xAI.

OpenAI, however, dismisses Musk’s allegations as “utterly without merit.” The organization maintains that it remains committed to its nonprofit roots, with its for-profit subsidiary designed to attract capital and talent under the nonprofit’s guidance. OpenAI also highlights that Musk previously supported the creation of a for-profit entity and had sought to lead it.

This legal dispute underscores the broader tension in the tech industry between profit motives and ethical considerations in AI development. Musk’s actions reflect his concerns about the rapid commercialization of AI and its potential societal impacts. And Musk is playing hardball.

It was revealed today that Elon Musk’s AI venture, xAI, is making waves with its aggressive pursuit of cutting-edge AI hardware. The company has reportedly landed priority access to Nvidia’s highly anticipated GB200 (Blackwell) GPUs, scheduled for delivery in January 2024.

Sources reveal that Musk personally negotiated with Nvidia CEO Jensen Huang, offering a premium to fast-track the $1.08 billion order. The deal underscores the strategic importance of advanced AI infrastructure as Musk positions xAI at the forefront of the artificial intelligence race. The GPUs will be manufactured by Nvidia’s key partner, Foxconn, further highlighting the collaboration between tech giants in meeting the surging demand for AI capabilities.

As the following tweet explains, go against Elon at your peril.

Source: X