Elon Musk Reignites Legal Battle Against OpenAI and CEO Sam Altman Over Alleged Fraud

By Thea Felicity

Aug 05, 2024 12:27 PM EDT

SpaceX, X (formerly known as Twitter), and Tesla CEO Elon Musk speaks with other delegates during day one of the AI Safety Summit at Bletchley Park on November 01, 2023 in Bletchley, England. 
(Photo : Leon Neal/Getty Images)

Earlier this year, VCPost learned that Elon Musk has withdrawn his lawsuit against OpenAI and CEO Sam Altman after accusations of of prioritizing profit over public welfare, violating their original commitment to develop artificial intelligence (AI) responsibly. 

However, sources are suggesting that cases can be refiled.

READ MORE: Elon Musk Condemns Apple's OpenAI Agreement; Are His Concerns Valid?

Elon Musk Lawsuit Against OpenAI and Sam Altman

Now, according to CNBC, Musk has reignited his legal battle against OpenAI and its co-founder Sam Altman, filing a new federal lawsuit alleging deception and fraud. According to the lawsuit, Musk claims he was misled into co-founding OpenAI under the pretense that it would operate as a non-profit organization. 

As the original lawsuit claimed, the Tesla and SpaceX CEO argues that after his massive investment, Altman and current OpenAI President Greg Brockman shifted the organization's focus and violatied the initial agreement.

The lawsuit, filed in Northern California, accuses Altman and Brockman of self-serving deals that Musk believes undermined the original non-profit mission of OpenAI. Musk's legal team describes the situation as one of "Shakespearean proportions" and a major betrayal.

In this reignited legal action, Musk further alleges that Microsoft, a major investor in OpenAI with current $13 billion investment, exploited its relationship with the company to gain undue influence through its cloud computing services.

Both OpenAI and Microsoft have not yet commented on the new legal action, and the situation is still developing as the case proceeds.

READ NEXT: Elon Musk Withdraws Lawsuit Against OpenAI and CEO Sam Altman, Case Could Be Refiled

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