Elon Musk Questions Legality Of OpenAI Going From Non-Profit To For-Profit Amid Apple, Nvidia Investment Buzz: 'OpenAI Is A House Of Cards'
Tesla and SpaceX CEO Elon Musk, who co-founded OpenAI in 2015 and subsequently left it in 2018, has once again raised concerns over the legality of the ChatGPT-parent’s shift to a for-profit model. This comes in the wake of reports suggesting potential investments from tech giants such as Apple Inc. (NASDAQ:AAPL) and Nvidia Corp. (NASDAQ:NVDA).
What Happened: On Friday, Musk responded to a user’s query about the legality of OpenAI’s transition to a for-profit model.
The user noted that Apple is reportedly in discussions to invest in OpenAI, joining Microsoft in valuing the company at over $100 billion. The user said that this raises questions about whether Musk, who initially funded OpenAI, should be entitled to a share of this value.
He also questioned the legality of the company accepting donations, converting the resulting intellectual property into a for-profit venture, and then pocketing the money.
In response, the tech billionaire stated, “Either turning a non-profit into a for-profit is legal and everyone should be doing it or it's illegal and OpenAI is a house of cards.”
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Why It Matters: This isn’t the first time Musk has raised concerns about OpenAI’s operations. Earlier in August, Musk reignited a legal battle against OpenAI, accusing the company and its co-founders of prioritizing commercial gains over their original mission of benefiting humanity.
Previously, OpenAI CEO Sam Altman responded to the lawsuit, stating that while the AI startup initially started as a research lab with no plans for commercialization, the evolution of technology necessitated certain decisions that may seem questionable in hindsight.
On Thursday it was also reported that Microsoft Corp. (NASDAQ:MSFT) intends to put more money into OpenAI. So far, Microsoft’s investment in OpenAI is reportedly valued at up to $13 billion.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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