Elon Musk resumes legal fight against Open AI and Sam Altman as...
Elon Musk takes Sam Altman and Open AI to court over getting him to invest in the artificial intelligence (AI) firm “fraudulently.” On Monday, a filing revealed that the $44 million investment was made under the assumption that the firm would remain a “nonprofit” focused on AI development.
Musk's Previous Lawsuit
Musk had previously sued the AI firm and its CEO for breaching their mission to develop AI for the “benefit of humanity”. Although Musk withdrew this lawsuit in June without clear explanation.
In the recent filing, Musk alleges that OpenAI executive Altman had initially planned to convert the firm to a “for-profit” entity after producing valuable technology. Musk claims that the executives changed their plan and “improperly profited” from deals with Microsoft and other entities.
Accusations and Allegations
Musk has accused the executives of fraud, breach of contract, unfair competition, false advertising, and other charges. The lawsuit holds various OpenAI-related entities accountable for turning the firm into a “for profit” organization and deceiving Musk.
Despite a recent downturn in the crypto market, AI tokens, particularly the top 10 based on market capitalization, showed signs of recovery on Monday. While Bitcoin and other cryptocurrencies experienced a drop below key support levels leading to over $1.06 billion in market liquidations over 24 hours, AI tokens managed to sustain their gains.
Musk's filing outlines his claims against OpenAI and Altman, stating that they changed the direction of the company to profit from valuable technologies, leading to fraudulent practices.
Despite ongoing controversies in the AI sector, the 24-hour trade volume in the sector exceeded $3.14 billion. OpenAI recently introduced an advanced voice mode in ChatGPT, enhancing the capabilities of the Large Language Model (LLM), a significant development in the industry.
Worldcoin (WLD), led by Sam Altman, experienced a nearly 3% decline on Monday, trading at $1.598 at the time of writing.
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