Elon Musk Vs. OpenAI - The Lawsuit
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- čas přidán 7. 03. 2024
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Elon Musk filed a lawsuit last week against OpenAI and its CEO Sam Altman, alleging the company’s deal with Microsoft compromised the start-up’s original mission. Musk is seeking disgorgement, additional unspecified damages and specific performance.
Let’s go through these claims one by one, see what legal experts have been saying about the case. We will also discuss the Open AI memo saying that the claims in this lawsuit suit stem from Elon’s regrets about not being involved with the company today and the emails OpenAI released showing that Musk initially supported the plan to create a for-profit entity and wanted a merger that would make Tesla its "cash cow."
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I don't want to speak in a new language in 3 weeks, I want to rap in 2.
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Do they have a new language that I can learn to understand how 0% chance of success lead to this lawsuit
Can it train elon musk to stop speaking 'neonazi' on twitter?
I don't think that it has conclusively been proved that Elon Musk is human.
I don't think it's positive to dehumanize people.
He's a demon
This is true I heard on 4chan he is a lizard person
Musk isn't Zuckerberg. Musk is very human. Very childish though.
He's an awful example, but yeah he's human... Unfortunately.
Your Honor.
On my reputation as CZcamss premier rap based financial review channel I can with 110% certainty declare that Elon Musk is a part of humanity.
Unfortunately, if the judge ever meets Musk, they would have questions about this claim
Biologically only.
I feel this needs testing. Let me propose a traditional test from Shakespeare: If you cut me do I not bleed?
Would the testers please form an orderly queue.
I have eyes. I'm not buying it.
@@michaelmoorrees3585 not so sure 😁😁😁😁
The most likely reason the suit was filed in California is that California specifically recognizes an enforces verbal contracts to an extent that other states typically do not. That said, even with diversity jurisdiction, the case would likely be decided using Delaware law, regardless of whether or not the case was actually tried within the borders of Delaware.
There are no assertions of a "verbal contract" in the complaint filed by Musk and his lawyers... They list emails and inception documents as a "quasi-contract"... He is simply dodging Delaware court because this kind of bs don't last very long in DE courts. Although it is likely to be dismissed in California, it'll just stay longer on the docket.
Yeah, maybe so... But the verbal contracts that you allude to, mostly have to do with the movie & music industries... I don't think that, that aspect of Cali law was to referee a pissing contest between two bored billionaires.
So only between bored millionaires.@Confucius_Says...
The problem is, the whole nonprofit-to-profit thing is actually quite bad, because it might have been done to ensure investors would accept having less control over the eventually for-profit entity by using charity as a mask, which would basically be a deceptive trade practice.
Also the 'Open' in Open AI is not open source as the founders are revealing right now in response to the lawsuit. They could have named it Humanity AI, Freedom AI, Social Service AI and so on.
@@dvoiceotruth I'm not sure I understand your point. Are you implying that any business with "Open" in it's name must make all its code / work publicly available?
Because otherwise I don't see how that name could have anything to do with a "deceptive trade practice".
Yes. When you are a tech company that produces software IP. Open means that only. Were it open source, there would already be a checker or tool to find out whose image it has been trained on or something like that. I am also saying because for many engineers and tech VC investors 'Open' amounts to a mythical holy grail that they can happily work for without getting anything in return. This already attracted a lot of talent, positive press, and investment starting from 2015 and people missed to see where it was all leading to.@@DoubLL
@@DoubLLthey raised money with the notion that it will be open source.
What’s interesting to me is just how much of the ‘i hate capitalism’ crowd is not addressing this very real concern simply due to their dislike of Musk.
Something for the legend Adam Neumann here? "Launching as a non-profit before tansferring the IP into a for profit"-pure genius..
Very pure and in the spirit of nonprofits
I think it depends. If equity in the for-profit is issued on arms-length terms, with the non-profit retaining its pro rata share, then it's just a financing scheme. It makes a lot of sense given that non-profits may have restricted financing options and debt might be inappropriate.
@@SloverOfTeuth Or maybe they realised they'd made a mistake and would actually quite like to be billionaires so have found a loop hole that allows them to make money from a non-profit.
So good to hear Patrick talk about what he loves "beef in the billionaire rap scene"....
Haters
Excellent visual aid. 10/10.
I often wonder how a financial youtuber could have one of the funniest channels on the platform.
both finance and comedy require high intelligence. He has it
his laurel n hardy dress sense
its rap news
@@martymarl4602 finance doesnt require hgh intelligence at all tho it can help in certain roles
It seems criminal to me that they can call it "OpenAI" and have no part of it be open source by any stretch of the imagination.
In anything Musk has been involved, words have no meaning.
@@sca04245 Elon Musk is the one who wants it to be open. You people just mouth off without even knowing what's going on.
@@MA-go7ee 'founder' 'full self driving' 'highly confident that'
@@MA-go7ee 2019: "It is financially insane to buy anything other than a tesla. It'll be like owning a horse in three years."
The world would be a worse place if we all had the money to file lawsuits just because we were feeling salty 😂
Obviously the law firm Dewey, Cheatem and Howe is thinking of those sweet billable hours.
In a lot of places, you don't need much money to file lawsuits. Some of them have what amounts to legal welfare where fees and such are waived for sufficiently poor people. Most just don't have very high fees. Maybe a few hundred for the paperwork and stamps.
They have violated their founding mission. It's just that courts generally don't care and especially aren't going to fight Microsoft over. It would be a good legal precedent, but no, everyone should blindly hate on Musk and boot-lick Microsoft
Founding missions are not necessarily legally binding, but never mind...@@TheThreatenedSwan
@@unconventionalideas5683 that is the same as "sometimes they are legally binding"
Looks like Musk's legal brief was written by Chat Gpt😂
lol, but seriously I want to know what firm is handling this case for Musk.😅
I can sort of see Musk’s point, but I don’t think this case will go anywhere. Nor is he the best messenger.
It’s standardized for lots of law firms for some time.
@@MarcosElMalo2 this suit is being spearheaded by the law firm of Pay & For & My & Yacht
Case Chat GPT vs. Open AI
@@cycleistic1365 🤣🤣🤣🤣🤣
He left OpenAI years ago, and made no legal contract on how OpenAI should be continued, and he thinks he gets a say so on how OpenAI should continue??? When he left OpenAI he forfeited that right. Now he has just as much say so as any other standard employee that quits OpenAI
Damn you Patrick... Two minutes in and your set gag already has me spluttering coffee! Love the dry wit you pepper wry observation with.
No one deftly slides barbed wire under your arse like the “Wait, what?” John Malkovich of CZcams commentators.
The problem with this "tax loophole" is that donating money only gets you limited say on what the nonprofit does. The nonprofit still has a fiduciary duty to the public to advance it's mission. This LLC as it's found apparently does as well. If they aren't acting accordingly the attorney general would have to be involved it sounds like.
Exactly, it cannot work as described here. I work in a different tech industry that often licenses tech from universities & nonprofit entities that receive various preferred tax treatment. It’s a given for us that we must set up a new entity to commercialize a product. We are not legally permitted to take investments to develop a technology while using a nonprofit structure to avoid taxes & regulation. It’s utterly absurd that anyone thinks this is feasible and I assume OpenAI, Microsoft & whoever else is involved is headed for a world of hurt eventually as a result of whatever was attempted here
Not if your Donald Trump. Example; he viewed his own non-profit as a profit center.
Well the attorney generals are apparently supposed to monitor these non-profits. I mean I'd be down for the IRS or another federal agency to have much greater rules for monitoring and nonprofit transparency. In a fair world, we do something about scientology and religions would have to separate for profit and nonprofit arms.
The cybertruck visual got me good
If Elon was profiting off of OpenAI, he sure as hell wouldn't have sued them now lmao.
Can be said for almost any lawsuit ever
Youre right. But I still think OpenAI is too dangerous for progress to be made for any interest other than the public's. So I still think the lawsuit is a good thing to bring foreward.
As a Delawarean I do appreciate Musk staying out of our state as much as possible. Good on him
Have you guys heard about the lawyers asking for 6 Bil in fees, for the tesla payment package lawsuit? To be paid in Tesla shares. makes it to 288k an hour, lawyer costs. I should have been a lawyer!
Lmao no way any judge actually allows that it's Ludacris
Its not like the lawyers won a bunch of money for their client. They just forced Tesla to reconsider Musks compensation.
@durkdiggler4346 it is exceptionally hip hop alright
Thars great!I am happy for them!
@@durkdiggler4346Nothing to do with judges.
Wow, I was not aware about the importance of 50 cent for the development of AI.
It’s a metaphor for its value next year.
That's why we need Patrick - he gives us these nuggets of rap genius!
I really appreciated and benefitted from the set theoretic explanations in the video. Thanks, Patrick.
It was filed in CA because it would have already been dismissed as BS in DE.
so true. as silicon valley continues to spiral i assume we will see even more of this type of legal dumbassery
Come to think of it, isn't Elon Musk the same guy who upped the price of electric cars after having already pre-sold them at a set price and off with just a shrug of his shoulders, just expected people to pay the difference~?
Patrick really busting out set theory
Taking it to the max 😂
I'm somewhat concerned that the reason the lawsuit sometimes refers to the recipient of the fiduciary duty of the company interchangebly between him and humanity is that Musk believes himself to be a voice of humanity.
It wouldn't be completely out of character for that wacko.
I can totally see him standing, towering over his team of lawyers, screaming "I AM HUMANITY, I AM THE LAW".
And I also apologise if the statement above is not clearly worded, English is not my first language.
I can imagine that too.
Musks extraordinary narcissism knows no bounds.
No problem with your comment. You still got the point across quite clearly.
As preposterous as imagining Fauxi declaring “I REPRESENT SCIENCE”.
Oh wait…
The guy is a megalomaniac. 😑
Thanks for the subsets illustration. I was getting confused.
I guess this sort of lawsuit is what should be expected if a company's founders were all microdosing when they formed their enterprise...
Nah microdosing would barely have any effect. This is proper macrodosing. Whether it's coke, LSD, shrooms, alcohol or others, one can only wonder.
@@moipaslui2924 "barely any effect"... sir, with all respect, if you think "microdosing" is not a form of tripping, then you are tripping... Using hallucinogens as a stimulant enhances the psychotic component of one's actions even if the person who has dosed themself does seem "functional" to others...
zzz@@ElbowShouldersen
You're uneducated on the subject and should speak less on it. Microdosing is a near bullshit concept and hasn't even been proven. They were either tripping or not. Tell me you're scared of psychotropics without saying that...
Looking very dapper, sir. Wasn't expecting this today.
That bow tie is absolutely God tier
That Venn Diagram did some important work. You should be paid
Elons mad he isn’t in charge and can’t tell the world how great he is for running OpenAI 😂.
What a cry baby
‘Founder of’ more like
@@calebhare2416Irrelevant, founders get pushed out or leave all the time.
He’s just complaining about OpenAI’s success & how he can’t take credit for shit. He literally said the organization/company would fail when he left.
Then Altman worked with others to bring it to fruition despite that.
Hes mad that they labotomised it for the benefit of operation mockingbird
THIS....Apartheid Clyde has sour grapes syndrome
@lolitsnito like he forced out the tesla founders and pretended to be the sole founder.
Exceptional.. May I add... "My Dad, when he was alive, used a lump hammer like a Sonic Screwdriver..., a man well ahead of his time"..., (As are you Patrick). Dave
So the tl/dr is that Musk is rich enough to file a nuisance lawsuit.
Literally taking his ball and went home because they wouldn't let him be CEO.
Biggest cry baby ever.
Absolutely outstanding! I am always impressed with your research, preparation and delivery of your videos. Well done. 👍🏻
That mathematical chart was SUPER helpful, thank you for sharing!
I absolutely love your occasional creative deadpan humour
Can you imagine having so much free time and money that you can file absurd lawsuits against your competitors and perceived enemies??? I'm not sure I would waste my time.
I thought Musk was too busy "building Tesla cars".
@@theultimatereductionist7592right 😂
His argument is sound, it's just that the courts never go after 501c3s for violating their charter unless they're organizations the state doesn't like. But I'm glad the hate for Elon means we'll ignore that OpenAI is now a subsidiary of Microsoft
Trump does this all the time, and then stiffs his attorneys. If you don't have a boatload of money, don't anger a rich sleeze.
You've done nothing with your time anyway, so who cares about if you'd bother or not?
Hopefully Ilon would not get yourself bankrupt too fast with all of those lawsuits, as I barely accustomed to loss of Credit Suisse references.
😂😂😂😂😂 Credit Suisse was the gift that kept on giving... Until they went under...
@@Confucius_Says... Too sad, it was my comic relief bank.
@@makuru_dd3662 🤣🤣🤣👌
Are you a 100% sure the subset of Elon Musk falls under humanity?
The dry humour.. awesome 😎
Very interesting topic.
Elon Musk, the wealthiest Karen in the world. (Let the trolling by stupid fan boys begin.)
Musk really wishes he was the CEO of OpenAI instead of Sam 😂
Even Musks day has only 24 hours. Instead of spending time with his lawyers I thought he has other stuff to fix
If I was a billionaire, I would do all the random side quest as much as I want.
I think he fixes stuff by staying away so people who actually know what they're doing can get stuff done.
Musk has been deploying lawyers ro take companies since Paypal. This is how he get his money
It sure isn't a side quest. Its the main event
Spending time with his lawyers? That’s not happening😊
Lately he’s been breaking more than fixing. More time spent with his lawyers means less time for dumb Twits.
Did anyone else notice that Babel has a promise of results over 3 weeks (21 days)
and a money-back guarantee up to 20 days?
Set A and set B 😂😂😂
I'm gasping for air, Patrick! 😂
This video reinforces my impression that Elon Musk wants to live in a world where he controls everything.
_Amen. The guy frightens me._
Way to rock the bow tie!
Fashion icon.
@@djsmithe
fashionista, rap afficionado, is there nothing this man can't do?
@@jerrymartin7019 Make sense of Credit Suisse.
@@jerrymartin7019 I like his velvet jacket. It probably Tom Ford.
On the heels of the new Prada collection as well. I think it's a bold move executed flawlessly.
Patrick kills me with his dry humor.
I love his acid humour.
I fucking love this guy’s deadpan style. Well done, my guy.
He has autism.
Patrick Boyle is probably the only person who can pull off being a great comedian, rap news reporter and finance expert! 😁
Yes! I want to see Mr Patrick B as expert witness, willing to pay good money to fly/stay at the city where the case will be held.
I want to see Mr Patrick's expert testimony on (w)rap music and the implication(s) on OpenAI and E. Musk. =)))
You are doing great work here! Consistent, always interesting, and informative.
Best videos on CZcams. Great topic, well explained, very thorough and insightful. I wish you released these more often. I love the way you think.
Isn't Elon Musk the person who, for $100K, lets you drive a stainless steel refrigerator?
I love the hand drawn diagram ❤😂
Poor Elon missing out the entire AGI stock boom. I feel so sorry for him
Maybe a question about pretending the for profit venture is charitable, but the rest of the suit is unhinged.
He’s trying to initiate a public conversation and to snoop around OpenAI during discovery. If they say yes, they’re giving info to Musk who’s a competitor, but if they say no, that goes against their stated mission as a non-profit that’s developing this tech to make public for everyone.
Musk’s lawsuit isn’t particularly well-formulated, but I think the corp structure of OpenAI must be changed. You cannot get billions to license products to Microsoft (the most valuable public company) while claiming to be a non-profit to avoid taxes. It’s the height of absurdity
Your dunking on Apartheid Clyde always makes my day ☺️ thank you!
Good video, thanks for explaining it.
We seriously need to thank God, and Sam Altman, for making sure Elon Musk wasn't able to take control of OpenAI in the way he wanted to.
He wants to own OpenAI to rename it OpenX so it seamlessly integrates with X.
This thumbnail deserves an award.
Once you have donated to charity and claimed a tax benefit, your investment is gone. All you have is a feeling of virtue.
I think Musk is not naive to think he can "win" the lawsuit, but he's playing a long game by drawing attention to OpenAI's structure, the realities of its operations and its true fiduciary duties that others including government will pursue.
Why do some people go WAAAAY out of their way to try to believe that Elon Musk is anything but what he appears to be ! ?
An IDIOT !
I think he doesn't trust the future of AI in Microsofts and Googles hands and I don't trust them either.
As opposed to the hands of Elon Musk, a deranged racist and megalomaniac ?@@leonfa259
Musk missed the boat that wasn't accepting passengers, complains that he isn't the captain and argues that this is an affront to everyone and therefore they should work for free and also give him money. That about sum it up?
😂
Awesome !! Thank you
3:00
I don't know if that's a good idea Patrick. Appearing as an expert witness outside the subject of rap seems odd.
10/10 Outfit (and video), Mr. Boyle.
Woah , Elon Musk looks terrible once you dig in this complaint.
Thank you for another wonderful video! You've covered this issue so completely it's difficult to think of anything to comment on. It does seem like the most interesting aspect of the lawsuit is the spotlight it throws upon OpenAI's unusual corporate structure. A for-profit company controlled by a non-profit company does seem a bit like having your cake and eating it too. As you said, they can do things like have a close corporate relationship with Microsoft while still avoiding antitrust issues. It sounds like the US government will have the last word on that.
Makes one wonder if this is really about OpenAI, but more about the tax code considering the current issues with R&D tax credits being revoked a couple years back.
Musk: no contract, no stakes, no basis, but a lot of 'i am so jealous and i need at least to beat one AI corp to go so i can get my monopole or at least any use out of my crap..."
Thankyou Patrick for pitching your expert analysis into Musk's gimme gimme tantrums
looking sharp Patrick👔
He always looks sharp. All his suits look bespoke.
Sartorial sponsorship by Chevrolet.
Before you sign a contract you should consult legal experts. Never consult illegal experts.
Brilliant take down 🙏
At this point this is a classic - you start something seemingly noble, people get their money or data invested in it, and then you sell it all out to the highest bidder. That should be a capital crime!
There should be no capital crimes, its not very progressive.
You want to make it punishable by death????
@@zagreus5773Yep, if done at a large scale.
@@dgo4490bro, this is Capitalism. Every company Musk owns followed rhese rules ans Musk was the highest bidder (until Twitter)
@@trunkageIt should apply to everyone. If there's more societal harm caused by a crime than the offender can repay
Haven't watched this yet, but already know the humour is going to be drier than the Sahara. And more scathing than something very scathing.
Is there any way both Musk and OpenAI can lose this case? Because that seems like the ideal outcome to me.
Tbf, the idea of non-profits turning into corporations when they've built something sellable is a frightening loophole. Tho that's obviously not musks motivation here.
I come here for knowledge and humour and this time you hit ball out of the park Patrick, lol!
I love your deadpan style, but the way you said “Encantanto de conocherte” was so cute, it gave me years of life 🥹
In addition to seeking attention, Musk - who is currently developing for-profit AI - is simply looking to slow down a company that he, quite optimistically, sees as a competitor.
Right. It makes no sense to say I want my investment back because you didnt give the product away for free or let me be the sole control of it. He wants to be the greater good as well as the great gatekeeper extorting humanity. More like the great gaslighter 😂
Some of the arguments in the case have merit but Elon asking for damages is comical.. what did they damage? his ego?
Elon gave his public word that he would drop the lawsuit if the board changed the general name to "ClosedAI".
Poor little Elon
I was hoping for this vid
The muskrat has a whiff of desperation about him these days.
He wants the tech to help save his self crashing cars...
This wouldn't be happening if Musk didn't have any money.
Musk is right open AI set a bad example of Non profit organization. However Musk did not think open AI will be this successful otherwise he would never have donated or asked for stake and good ownership structure before giving them the initial capital he feels owed billions and this is the real issue.
He's clearly salty that he didn't get in on it with AI, like when he demanded a 6 month stop on AI development to probably get own progress at Tesla to catch up
"This house fire is out of control and needs to be put out!" says man who brought the fuel and matches to the arsonist meetup, after he didn't get reimbursed his costs.
Elon's just sore that Open AI is way out in front of his own AI efforts and that he made a big mistake by not staying involved.
AI has been one of Elon's hobby horses for a long time. That he's well behind the curve, with Open AI way out in front, and probably Google too, irks him no end, especially since it was his own decision that he walked away from Open AI.
Basically, Musk believes he has special insight into AI, yet he finds himself as somewhat of an also-ran as the company he helped organize is now way out in front, showing that he made a huge mistake in not staying involved.
Meanwhile, the EV market oversupplied - recently Apple took a decision to stop working on EVs and devote the AI resources in the project to AGI, in part because they no longer see how to make money in EVs. Taking nothing away from Elon in having the insight on how to make EVs popular, it seems pretty clear that the competitive landscape for Tesla is just going to get harder and harder.
In other words, AGI now overshadows EV in terms of tech sexiness. But Musk finds himself way behind on AGI, so he wants to force Open AI to basically give him all the tech they have, for free.
@@cv990a4yeah this is probably the best comment I’ve seen explaining this. I highly doubt Elon expects to win this lawsuit but he could get OpenAI to divulge some their tech which I’d bet is what he’s actually after
@@cv990a4 yes, and he's also way behind the likes of Mistral and Stability, who make genuinely open source models. If he'd done something similar he might have had more of a case rather than his 'based' for profit LLM that no-one actually uses.
These organizations never are held to their original mission. Musk is right about it just being an organization for Microsoft's benefit.
love u Patrick
401k was for Hughes? I had heard that it was for Kodak. Hence the 'k'.
Mr, Boyle, I've been consuming your content for like a day and this is probably the quickest I've subscribed to someone. Great content, and I'm not business oriented I'm an engineer, so you make things detailed yet understandable. I also like your level of well deserved shade.
You should have over 1Mil subscribers.
Poor Space Karen. He’s already so rich he’ll never be able to spend his money in 100 lifetimes, and now Phony Stark wants more.
Space Karen is the best nickname ever.
brilliant!
How will this lawsuit affect my strategy of selling low and buying high?