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. AAPL and Nvidia Corp. 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. 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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