OpenAI CEO Sam Altman and Tesla CEO Elon Musk
Elon Musk has proposed a resolution to the legal dispute between his companies and OpenAI: a name change to ‘ClosedAI’. The conflict arose when Musk filed a lawsuit against OpenAI and its CEO, Sam Altman, alleging breaches of their original contractual agreements on AI development.
OpenAI countered by revealing discussions about transitioning to a for-profit structure and rejected Musk’s demands for merging with Tesla or gaining full control. They emphasized their mission’s incompatibility with Musk’s proposals.
Musk’s challenge to change the name to ‘ClosedAI’ reflects his criticism of what he sees as a facade maintained by OpenAI. Negotiations soured when Musk allegedly withheld funding after OpenAI refused his conditions of majority equity, initial board control, and the CEO role.
OpenAI’s co-founders stood firm against granting absolute control to Musk, citing misalignment with their organizational ethos. Musk subsequently left OpenAI, expressing his intent to compete independently against Google/DeepMind, while still supporting OpenAI’s alternative pursuits.
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