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- Clash of the Titans: The High Stakes Battle Between Elon Musk and OpenAI
Clash of the Titans: The High Stakes Battle Between Elon Musk and OpenAI
+ Why Gemini's Deep Research changes the game
Zoe Kopidis & Ivan Jackson
December 16, 2024
Elon Musk and Sam Altman have been battling it out in the courtrooms and on the internet. AI-generated image by Musk’s Grok.
In what is quickly becoming an ugly public brawl, OpenAI just slammed Elon Musk’s lawsuit to advance his own rival A.I. company. Once co-founders working toward the public good, they now clash over who sets the rules for the future of artificial intelligence.
We’ll also take a quick look at Gemini’s new Deep Research feature. We tried it, and take our word for it, you NEED it for your next research project. Read through to the end of this week’s newsletter to see what we’re talking about.
Before we get into the fight, here’s what you need to know this week ⬇️
🕵️ OpenAI whistleblower reveals risks in generative AI.
💻 Adult creators use AI tools to keep up with fans.
🚸 Character.AI updates teen policies after lawsuits.
🎨 Madonna’s AI art of the Pope sparks debate.
🎶 Paul McCartney warns of AI's impact on the music industry.
🚀 Gemini 2.0 adds new features and better safety.
⚖️ OpenAI accuses Musk of sabotage in lawsuit.
📰 Apple AI falsely links Luigi Mangione to shooting.
📚 UCLA’s AI textbooks raise concerns on integrity.
Inside the Musk, OpenAI Feud
OpenAI and Elon Musk were once partners, co-founding an ambitious nonprofit (OpenAI) in 2015 with a shared vision: guiding the future of artificial intelligence for the benefit of humanity. Today, they stand in opposite corners of a legal ring, trading blows over who truly steered the venture off course. In a newly filed legal response, OpenAI accuses Musk of using the courts to stall its growth as he pours resources into his own rival venture, xAI.
Take a look at this email from Elon Musk to Sam Altman in 2015:
Re: AI docs
––––– Forwarded message –––––
From: Elon Musk <redacted>
Date: Fri, Nov 20, 2015 at 12:29 PM
To: Sam Altman <redacted>
I think this should be independent from (but supported by) YC, not what sounds like a subsidiary.
Also, the structure doesn’t seem optimal. In particular, the YC stock along with a salary from the nonprofit muddies the alignment of incentives. Probably better to have a standard C corp with a parallel nonprofit.
––––––––––––––––––––––––––––––
On Nov 20, 2015, at 11:48 AM, Sam Altman <redacted> wrote:
Elon–
Plan is to have you, me, and Ilya on the Board of Directors for YC AI, which will be a Delaware non-profit. We will also state that we plan to elect two other outsiders by majority vote of the Board.
We will write into the bylaws that any technology that potentially compromises the safety of humanity has to get consent of the Board to be released, and we will reference this in the researchers’ employment contracts.
At a high level, does that work for you?
I’m cc’ing our GC <redacted> here–is there someone in your office he can work with on the details?
Sam
Earlier this year, Musk sued OpenAI, claiming the organization abandoned its founding nonprofit mission in favor of big profits. He alleges that CEO Sam Altman and President Greg Brockman placed commercial interests—most notably, a multibillion-dollar deal with Microsoft—over the public good. OpenAI counters that Musk himself once championed a for-profit model before leaving in 2018, and that his lawsuit now is not about principle but about slowing a competitor down.
Should OpenAI be allowed to remove non-profit status?
At the heart of this dispute is OpenAI’s move toward a for-profit structure that could secure larger investments—critical fuel for advancing A.I. systems. Musk wants the courts to block this shift, but OpenAI says such a move would “debilitate” its mission. Newly revealed documents also paint Musk as an early advocate of turning OpenAI into a profit-driven entity and even seeking a major equity share for himself.
This isn’t just a personal quarrel. Other tech giants are weighing in, with Meta urging California regulators to examine whether transforming a nonprofit into a profit-seeking giant sets a dangerous precedent. OpenAI believes limiting its growth to appease Musk would harm the entire field, slowing innovation and risking U.S. leadership in A.I.
What’s really at stake here?
This isn’t just corporate drama; it’s about who gets to steer A.I. development at a time when these technologies are beginning to shape everyday life. If legal tussles can be used as strategic weapons, the path of A.I. might be dictated not only by scientific breakthroughs but also by courtroom maneuvers. As the legal filings stack up and regulators weigh in, the final decision will ripple outward, influencing the tools, services, and policies that shape our increasingly automated future.
🧰 What we love this week: Gemini’s Deep Research
Gemini’s new Deep Research feature is a game-changer for tackling complex topics. Available to Gemini Advanced subscribers, it acts as your personal AI research assistant, saving hours of work by generating detailed, source-backed reports in minutes. Whether you’re a student diving into robotics trends or a marketer benchmarking campaigns, Deep Research crafts actionable insights while refining its approach with every query.
Additionally, Gemini 2.0 Flash Experimental debuts as an enhanced AI model optimized for speed and performance, marking another step toward Gemini’s goal of becoming the most helpful personal assistant.
Explore Gemini Deep Research and see how it transforms the way you research and plan.
Thanks for joining us for this week’s newsletter!
As the battle between Elon Musk and OpenAI continues to unfold, the stakes couldn’t be higher for the future of AI. We’ll keep you updated as the story develops.
See you next week for more insights, news, and what we’re loving in the world of AI! 🚀
Stay tuned for more exciting insights in next week’s edition. Until then, keep overclocking your potential!
Zoe and Ivan from Overclocked