Hey everybody. Welcome back to the Elon Musk
Podcast. This is a show where we discuss
the critical crossroads that shape SpaceX, Tesla X, The
Boring Company, and Neurolink. I'm your host, Will Walden.
So what exactly is Elon Musk accusing Microsoft and Open AI
of doing to the AI market? And how does his concerns tie
into the origins of Open AI and its business?
Also, there's internal disputes going on, and they're being
revealed through a trove of early emails.
Now, in a move from Musk and his new legal claims, they broaden
his ongoing lawsuit against open AI but also named Microsoft,
marking a dramatic escalation in his efforts to challenge the
dominance of these two tech giants in the burgeoning AI
sector. Now, Musk's expanded lawsuit
filed in Oakland, CA builds on his original complaint from
August and now includes allegations that Microsoft and
Open AI conspired to monopolize the market for generative AI
technologies. The amended legal filing accuses
the companies of engaging in anti competitive practices
designed to shut out potential rivals and secure their dominant
position in the AI space. This lawsuit aims to nullify the
licensing agreement between Open AI and Microsoft, demanding the
forfeiture of profits Musk claims were obtained through
illicit means. The lawsuit comes after Musk
public criticisms of Open AIA company he Co founded in 2015
but later distance himself from as its focus shifted.
Now originally founded as a nonprofit aiming at ensuring AI
benefits to the public, Open AI is transformation into a profit
driven entity with heavy investment for Microsoft is a
central issue in Musk's legal arguments.
Never before has a corporation gone from tax exempt charity to
$157 billion for profit market, paralyzing Gorgon and in just
eight years, the lawsuit claims. This stark language underscores
Musk's disapproval of opening eyes direction in his tight
financial ties with Microsoft. Now, Microsoft has opted not to
comment on the ongoing legal case, but Open AI issued a brief
statement dismissing the new claims as even more baseless and
overreaching than the previous ones.
Meanwhile, Musk's lawyer framed the lawsuit as an attempt to
shed light on allegedly unethical business practices.
They said Microsoft's anti competitive practices have
escalated, adding that sunlight is the best disinfectant now.
Elon Musk's relationship with Open AI has been fraught with
tension, stemming from his departure in the company's pivot
towards a profit driven model. Emails unearthed in the legal
proceedings reveal internal discord not only about the
direction of Open AI, but also regarding Musk's role.
These in exchanges show that Musk initially envisioned a
leading role for himself, despite his public statement
suggesting he disliked the responsibilities of being ACEO.
Now, in one e-mail, Open AI is former chief scientist expressed
concerns about Musk's intentions, arguing that Musk's
desire for control could create risks.
They said the current structure provides you with a path where
you end up with unilateral absolute control over the AGI.
He highlighted Musk's inconsistent statements about
wanting to lead the company, despite his apparent reluctance
to take on ACEO role. They feared that Musk might
prioritize control over the broader mission of preventing
the misuse of advanced AI. Now, their concerns about the
potential for an AGI dictatorship weren't solely
directed at Musk. He also pointed to the risk of
Google's DeepMind achieving a dominant position in AGI
development, citing Demis Hassabis, Deepmind's Co founder,
as a key figure in what Musk described as One Mind to Rule
the World philosophy. This rivalry between DeepMind
was a motivating factor behind the founding of Open AI, as Musk
and his collaborators sought to create a counterbalance to
Google's growing influence in AI research.
Now, internal communications revealed that Musk's vision for
Open AI extended beyond nonprofit aspirations.
As early as 2017, he and other Co founders, including Andre
Carpathy, considered integrating open AIS resources with Tesla's,
potentially using Tesla as a cash cow to fund AI research.
Kaparthy or Carpathy, noted that the transportation sector's vast
revenue potential could help scale open AIS projects now.
The idea of merging the two companies never materialized,
though, in part because of the practical difficulties of
leveraging Tesla's resources in this way.
Now, by 2018, the friction between Musk and Open AIS
leadership had become more pronounced.
Emails indicate that Musk was growing increasingly
disillusioned with the company's trajectory, particularly as it
moved away from its nonprofit origins.
Sam Altman, who took on a prominent leadership role at
Open AI, faced scrutiny from both Musk and other Co founders.
Sutzkiver and Greg Brockman question Altman's motivations
and his desire for the CEO title, noting inconsistencies in
his reasoning, they said we haven't been able to fully trust
your judgments throughout this process.
Pointing to Altman's shifting rationale and underlying
intentions. Now, the infighting and
strategic disagreements culminated in Musk's departure
from Open AI. It chose to exit rather than
continue to push for changes within the organization.
And following his departure, Musk pursued his own AI
initiatives, culminating in the launch of X AI Company, focused
on developing advanced AI technologies with a robust
infrastructure that includes a 100,000 GPU strong data center.
X AI represents Musk's direct challenge to the current leaders
in the AI field, including Open AI and Google's DeepMind.
Now, this lawsuit alleges that Open a Eyes transition to a for
profit entity was driven by a desire to secure substantial
funding, ultimately leading to a significant investment from
Microsoft in 2019. Now, this deal, initially valued
at $1 billion, laid the foundation for a close
partnership that continues to evolve with Microsoft
integrating Open A Eyes technology into its products,
including the Copilot feature in its software offerings.
Now, Musk's lawsuit contends that his partnership resembles a
merger and should have been subject to regulatory scrutiny
due to its anti competitive nature.
Now, emails disclosed as part of the lawsuit provide a glimpse
into the financial negotiations and strategic decisions made by
Open A IS leadership. In 2016, Microsoft offered Open
AI $60 million in Azure compute credits, which came with the
expectation that the companies would promote each other's
services. Musk, however, recalled it the
idea of what he called corporate back scratching, describing the
proposal as making him nauseous. This early discomfort
foreshadowed Musk's later dissatisfaction with a deepening
ties between Open AI and Microsoft.
Now, one surprising detail revealed in the court documents
was Open AI's early consideration of acquiring
another company, Cerebrus, a chip maker specializing in AI
hardware. They suggested that the
acquisition could be facilitated through Tesla leveraging its
resources to support Open AI ambition.
The plan ultimately fell through, though, but it
illustrates the extent to which Musk and Open AI leadership were
willing to explore unconventional strategies to
cure an edge in the AI race. Now, despite the legal battle in
Musk's vocal criticisms, Open AI has continued to thrive, largely
thanks to Microsoft's backing. The software giant's investment
has propelled Open AI into a leading position partnership in
the AI industry, with its models, including ChatGPT,
widely adopted across various sectors.
Now, Microsoft's ongoing financial support signals its
belief in the potential of AI to transform its core business as
it continues to integrate Open AI technologies into all of its
products. Now, interestingly, Intel had a
chance to invest in Open AI early but declined the
opportunity. In 2017, Intel was offered a 15%
stake in Open AI for a billion dollars, an investment the
company passed on, citing doubts about AI's immediate return on
investment. Now, in hindsight, it appears to
have been a complete costly misstep as the value of Open AI
has soared following its partnership with Microsoft.
Now, the expanded lawsuit highlights relationships and
power struggles that have shaped the whole industry and if Musk's
claim, if they're proven true, could have far reaching
consequences for other major tech companies and the
partnerships and competitive strategies in this field.
Now the court battle promises to keep exposing internal documents
and private communications, shedding light on the behind the
scenes maneuvers of some of the most influential figures in
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