"In October, the state of California gave OpenAI a pass to move forward with a restructuring plan that will turn it into a for-profit public benefit corporation, with its nonprofit arm, the OpenAI Foundation, controlling all for-profit operations. The restructuring was necessary in part for OpenAI to attract investors and look toward an ultimate IPO, but almost as soon as the idea of the for-profit entity was made public, Elon Musk filed his lawsuit, claiming the OpenAI had abandoned its original professed mission to develop AI "for the benefit of humanity broadly.""
"This holier-than-thou stuff is all kind of laughable given that Musk's AI enterprise, xAI, has been spouting off pro-Hitler rhetoric in the last year, parroting Musk's own disinformation about a "white genocide" in South Africa, and more recently, promulgating non-consensual sexualized images of women and minors prompting a global outcry and multiple government investigations."
"As Bloomberg reports, Rogers found that a claim by OpenAI that Musk lacked standing to sue, because he used an intermediary to donate $38 million in seed funding to the startup, was spurious. And she refused to dismiss fraud allegations made by Musk regarding the actions and intentions of OpenAI's executives citing email evidence that, among others, OpenAI co-founder Greg Brockman was talking back in late 2017 about abandoning the non-profit structure."
Elon Musk sued OpenAI, alleging the organization abandoned its nonprofit mission after plans to restructure into a for-profit public benefit corporation controlled by the OpenAI Foundation. California approved the restructuring in October to enable investor backing and a potential IPO. US District Judge Yvonne Gonzalez Rogers denied OpenAI's motion to dismiss, finding Musk had standing despite using an intermediary for a $38 million seed donation. The judge also declined to dismiss fraud claims, citing email evidence indicating OpenAI co-founder Greg Brockman discussed abandoning the nonprofit structure in late 2017. Musk's AI venture xAI has faced accusations of extremist rhetoric, disinformation, and disseminating non-consensual sexualized images, prompting outcry and investigations.
Read at sfist.com
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