OpenAI accused Elon Musk of harassment in a legal fight that’s unfolding as it weighs a shift to a for-profit model.
Elon Musk of harassment in a legal fight that’s unfolding as the start-up weighs a plan to shift to a for-profit business model.
The company currently has a more complicated structure that includes a for-profit subsidiary — which was created in 2019 to help fund the high costs of AI model development, and it has since drawn billions in outside investment from Microsoft and others. “The suit is the latest move in Elon Musk’s increasingly blusterous campaign to harass OpenAI for his own competitive advantage,” Altman and the company said in a court filing on Tuesday asking a federal judge in Oakland, California to dismiss Musk’s complaint.The dispute is escalating as the fast-growing company at the forefront of AI innovation is mulling moving from its current nonprofit model — an unusual structure that has frustrated investors — to a for-profit business.
It has been a tumultuous year for the San Francisco-based start-up. Less than 12 months after the company’s board fired and then quickly rehired Altman as CEO, OpenAI has remade its board, more than doubled its headcount, and lost a number of key leaders — including co-founder Ilya Sutskever and chief technology officer Mira Murati.
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