Elon Musk Filed a Lawsuit Against Sam Altman, But was he right to do so? | The Complete Documentary

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Last Updated: March 7, 2024

4 minutes

“Within a sudden move, Elon Musk said that OpenAI is now focusing on driving profit even though it has established itself as a non-profit organization. Along with this, Musk filed a lawsuit against OpenAI and its CEO called “Sam Altman or Samuel Harris Altman.”

Late Thursday in California Superior Court in San Francisco, Elon Musk alleged that OpenAI had breached his agreement by moving toward profit capitalism.

How does this All Initiate?

Here, let me walk you through the entire process of the OpenAI Model, from its first announcement to the lawsuit, without skipping any knowledgeable section.

First, Announcement-

Early in 2015, the first announcement of OpenAI, when Sam Altman, the CEO of OpenAI, and Elon Musk together decided to establish OpenAI as a non-profit organization by involving themselves in a bond of partnership.

Both Elon Musk and Samuel Harris Altman have announced that ChatGPT will be released as the Largest Model of Artificial General Intelligence (AGI) in terms of the World’s Largest Language Model.

Training and Running Cost-

Both partners of OpenAI knew that it would be a very highly capital-intensive AI Model that needs hundreds or thousands of dollars every day. Nevertheless, it has been analyzed that the average undertraining cost of this OpenAI Model is around 700,000 per day, along with the assistance of a lot of employees.

The Investment-

As both Elon Musk and Sam Altman were in partnership on OpenA, Elon Musk promised to invest 1 billion dollars on his own. Together with this, there were other investors of the OpenAI as well, such as Peter Theil, Andreessen Horowitz, Reid Hoffman, Sequoia Captial, Khosla Ventures, and many more.

Not only these, but also the owners and the CEOs of the other companies were involved in OpenAI’s projects like AWS, Infoysis, and so on.

The Release Announcement- ChatGPT-2-

In 2019- Elon Musk and Sam Altman announced the basic version of the ChatGPT as the first Model of the OpenAI. The ChatGPT-2 (Chat Generative Pre-Trained Transformer) Chatbot, the Natural Language Generative Model, is basically free for everyone.

The re-announcement-

As OpenAI requires consistent investment, that was going to be costly for Sam Altman and other investors; hence, Sam Altman decided to make OpenAI a profit cap-based project.

Consequently, in 2019, Samuel Harris Altman announced OpenAI a profit-capitalist organization, which was not agreement agreement-breaching decision according to Elon Musk.

Stepped Out of Elon Musk-

Since the time Sam Altman announced that OpenAI is going to be a profit capitalist organization in 2019, Elon Musk denied the plan for a 1 billion dollar investment and has stepped out on the project by resigning from the board.

Plus, Musk announced that “I’m not into AI anymore, I’m Out—”

However, Elon Musk justifies that he’s stepping out since he has to focus on his own Self-dropping cars project at Tesla. But the reality was not hidden from anyone.

Talk of the Town news-

Due to Musk’s stepping out, Semafor (the prominent News Website) says that Elon Musk is biting his tongue by reneging on the promise to supply $1 Billion in funding since Elon Musk contributed only $100 million before walking.

Since the time Elon Stepped out from the OpenAI organization, OpenAI falls suddenly down in the market, and everyone thought that it wouldn’t run anymore. As the biggest investor in this project, Elon Musk has dropped out of it.

The New Investor – Entry of Microsoft (2nd July 2019)-

As Elon Musk didn’t spend any investment & get his steps back, in that case, the CEO of Microsoft, Satya Nadella, moved a little ahead and gave his hands to OpenAI in terms of partnership with Sam Altman in the same period of 2019.

The reason behind this is that OpenAI was the most powerful and influential company in America, and it was worth 10 billion dollars. Within this, there are two big new roles of OpenAI announced, Greg Brockman and Ilya Sutskever as co-founders.
The Updated version-

The first Launch- ChatGPT (Basic Version)-

In November 2023, the major investors Satya Nadella, the CEO of Microsft, and Sam Altman launched the First model of the OpenAI called ChatGPT. Along with this, both partners have decided to run the ChatGPT continuously in progress to enhance its working.

In the running mode, Sam Altman and Satya Nadella, along with other investors, are consistently working on its updated version and releasing ChatGPT 3.5 as a free AI Model.

The Second Third Launched- Dall-E (The Image Generator)-

On the 5th of January 2021, the OpenAI organization launched the Dall-E (The Image Generator) AI Model to allow its users to generate Hyper and Photorealistic images based on text commands.

Note- “Elon Musk said that OpenAI is now focusing on driving profit even though it has established itself as a non-profit organization. Along with this, Elon Musk filed a lawsuit against OpenAI and its CEO “Sam Altman or Samuel Harris Altman.”

Give us your thoughts. Did Elon right with Suing the case?

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