The Lawsuit between Elon Musk and OpenAI: New Developments
OpenAI just dropped a new blog post defending itself against Musk that outlines some new text messages between cofounders Ilya Sutskever, Greg Brockman, Sam Altman, Elon Musk, and former board member Shivon Zilis.
New Text Messages Emerge
“You can’t sue your way to AGI,” the OpenAI blog post reads, referring to artificial general intelligence, which Altman has promised soon. “We have great respect for Elon’s accomplishments and gratitude for his early contributions to OpenAI, but he should be competing in the marketplace rather than the courtroom. It is critical for the U.S. to remain the global leader in AI. Our mission is to ensure AGI benefits all of humanity, and we have been and will remain a mission-driven organization. We hope Elon shares that goal, and will uphold the values of innovation and free market competition that have driven his own success.”
The Conversation Unfolds
Some of the new messages revealed show Brockman telling Zilis in July 2017 about a meeting he had with Musk, who allegedly said that a non-profit was definitely the right structure early on but “may not be the right one now.” Later that month, Brockman wrote to Musk that path for OpenAI should be: “1. AI research non-profit (through end of 2017) 2. AI research + hardware for-profit (starting 2018) 3. Government project (when: ??).”
Musk’s Plans and Demands
The blog also highlights Musk’s attempts to maneuver into the CEO position and gain majority control of the company (though it adds that on one call Musk said he “didn’t care about equity” but “just needed to accumulate $80B for a city on Mars”). Musk also proposed that OpenAI spin into Tesla, which has been previously revealed. When the negotiations fell apart because OpenAI’s cofounders rejected his proposal (Brockman and Sutskever admitted they had fears of a power struggle), Musk resigned from the company.
Aftermath and xAI
The blog said that after Musk resigned, he hosted a goodbye all-hands with the team where he encouraged them to “pursue the path we saw to raising billions per year” and that “he would pursue advanced Al research at Tesla, which was the only vehicle he believed could obtain this level of funding.” Later, around the time Musk was working to acquire Twitter, he texted Altman that he was “disturbed” to see the company’s new $20 billion valuation. “De facto. I provided almost all the seed, A and most of B round funding,” he wrote, according to the disclosed texts. “This is a bait and switch.”
xAI and the Lawsuit
A few months after that interaction, Musk started an OpenAI competitor, xAI.
Conclusion
Today’s update from OpenAI attempts to counter Musk’s narrative by offering evidence that he, not Altman, attempted to seize control in the company’s early days — a direct response to Musk’s recent lawsuit claims about Altman’s power consolidation.
Frequently Asked Questions
Q: What is the lawsuit about?
The lawsuit is about the alleged power struggle between Elon Musk and OpenAI’s cofounders over the direction of the company. Musk claims that OpenAI has strayed from its original mission to develop AI for the public good.
Q: What are the new text messages about?
The new text messages reveal that Musk allegedly discussed the possibility of OpenAI spinning into Tesla and that he proposed to become the CEO of OpenAI. They also show that Musk was concerned about the valuation of OpenAI and felt that it was being undervalued.
Q: What is xAI?
xAI is a new AI research company started by Elon Musk, which is seen as a competitor to OpenAI.
Q: What is the current status of the lawsuit?
The lawsuit is ongoing, with OpenAI and its partner Microsoft counter

