Yeah, OpenAI basically grafted a for-profit entity onto the non-profit to bypass their entire mission. They’re now extremely closed AI, and are valued at $80+ billion.
You would have an argument if Elon Musk didn't attempted to take over OpenAI, and proceeded to abandon it after his attempts were rejected and he complained the organization was going nowhere.
I don't think Elon Musk has a case or holds the moral high ground. It sounds like he's just pissed he committed a colossal error of analysis and is now trying to rewrite history to hide his screwups.
I don't know how comparable it would be, but I imagine if I donated $44 million to a university under the agreement that they would use the money in a particular way (e.g. to build a specific building or to fund a specific program) and then the university used the money in some other way, I feel I ought to have some standing to sue them.
Of course, this all depends on the investment details specified in a contract and the relevant law, both of which I am not familiar with.
Yeah - Had you donated the funds as "restricted funding" in the nonprofit parlance, they would have a legal requirement to use the funds as you had designated. It seems that Musk contributed general non-restricted funding so the nonprofit can more or less do what they want with the money.. Not saying there's no case here, but if he really wanted them to do something specific, there's a path for that to happen and that he didn't take that path is definitely going to hurt his case.
The statement of claims is full of damages. It claims that Musk donated 44 million dollars on the basis of specific claims made by the plaintiffs as well as the leasing of office space and some other contributions Musk made.
Specific performance is a last resort. In contract law, the bias is towards making the plaintiff whole, and frequently there are many ways to accomplish that (like paying money) instead of making the defendant specifically honor the terms of the original agreement.
How much money have competitors been spending to keep up, reproducing the technology that was supposed to be released to the public benefiting everyone. All of that could conceivably be claimed as damages. Money they should not have needed to spend.
Even all of the money spent to access ChatGPT. Because, if OpenAI had been releasing their tech to the public, the public would not have had to pay OpenAI to use it.
Or the value of OpenAI-for-profit itself could be considered damages in a class action. Because it gained that value because of technology withheld from the public, rather than releasing it and allowing the public to build the for-profit businesses around the tech.
Lots of avenues for Musk and others' lawyers to get their teeth into, especially if this initial law suit can demonstrate the fraud.
> Wouldn't you have to prove damages in a lawsuit like this?
Not really; the specific causes of action Musk is relying on do not turn on the existence if actual damages, and of the 10 remedies sought in the prayer for relief, only one of them includes actual damages (but some relief could be granted under it without actual damages.)
Otherwise, its seeking injuctive/equitable relief, declaratory judgement, and disgorgement of profits from unfair business practices, none of which turn on actual damages.
Imagine if a regular for profit startup did that. It gets 60 million in initial funding, and later their valuation goes up to 100 billion. Of course they can't just give the 60 million back.
This is different and has a lot of complications that are basically things we've never seen before, but still, just giving the 60 million back doesn't make any sense at all. They would've never achieved what they've achieved without his 60 million.
I didn't read the suit, but they used (and abused?) Twitter's api to siphon data that was used to train an AI which that made them very very rich. That's just unjust enrichment. Elon's money paid for the website and using the API at that scale cost Twitter money while they got nothing out of it.
KeplerBoy|2 years ago
a_wild_dandan|2 years ago
If I donated millions to them, I’d be furious.
foofie|2 years ago
https://www.theverge.com/2023/3/24/23654701/openai-elon-musk...
I don't think Elon Musk has a case or holds the moral high ground. It sounds like he's just pissed he committed a colossal error of analysis and is now trying to rewrite history to hide his screwups.
zoogeny|2 years ago
Of course, this all depends on the investment details specified in a contract and the relevant law, both of which I am not familiar with.
mikeyouse|2 years ago
MiscIdeaMaker99|2 years ago
Kranar|2 years ago
riku_iki|2 years ago
boole1854|2 years ago
cynusx|2 years ago
AlwaysRock|2 years ago
https://www.courthousenews.com/wp-content/uploads/2024/02/mu...
QuantumG|2 years ago
laristine|2 years ago
otterley|2 years ago
aCoreyJ|2 years ago
stubish|2 years ago
Even all of the money spent to access ChatGPT. Because, if OpenAI had been releasing their tech to the public, the public would not have had to pay OpenAI to use it.
Or the value of OpenAI-for-profit itself could be considered damages in a class action. Because it gained that value because of technology withheld from the public, rather than releasing it and allowing the public to build the for-profit businesses around the tech.
Lots of avenues for Musk and others' lawyers to get their teeth into, especially if this initial law suit can demonstrate the fraud.
tw600040|2 years ago
WolfeReader|2 years ago
AlbertCory|2 years ago
dmix|2 years ago
dragonwriter|2 years ago
Not really; the specific causes of action Musk is relying on do not turn on the existence if actual damages, and of the 10 remedies sought in the prayer for relief, only one of them includes actual damages (but some relief could be granted under it without actual damages.)
Otherwise, its seeking injuctive/equitable relief, declaratory judgement, and disgorgement of profits from unfair business practices, none of which turn on actual damages.
delfinom|2 years ago
Abuse of non-profit status is damaging to all citizens.
prepend|2 years ago
The exact amount will be argued but it will likely be in the billions given OpenAI’s recent valuations.
thepasswordis|2 years ago
That seems like nothing to them, or Elon.
robbrown451|2 years ago
This is different and has a lot of complications that are basically things we've never seen before, but still, just giving the 60 million back doesn't make any sense at all. They would've never achieved what they've achieved without his 60 million.
xcv123|2 years ago
TeeMassive|2 years ago