š§µElon's losing case against OpenAI, Microsoft, and Altman, as explained by me, a tech lawyer, general counsel and former litigator.
Tl;dr - PR fireworks and fun-to-read intrigue and philosophizing about AGI. But legally, a stinker because thereās no contract breach. Thread. š
1/ ā First, Musk filed in Superior Court in San Francisco, not federal court. Musk bases his case on state law contract claims.
He has to show a contract and that it was breached. Musk claims:
1ļøā£ We agreed OpenAI and AGI would be open. But OpenAI is closed.
2ļøā£ We agreed AGIā¦
2/ The problem is no actual contract was breached. Let me explain.
Musk combines three things and says they're the "Founding Agreement" ...
1ļøā£ Talks with Altman about what OpenAI was to be
2ļøā£ A 2015 email to Altman where he says
3ļøā£ OpenAIās articles of incorporation, whichā¦
3/ š Even assuming Musk were a party to OpenAIās articles of incorporation - hint, he's not - let's look at what they say.
First, that the ātechnology will benefit the publicā - got it.
OpenAI showing benefit from its tech is easy. Subjective. Impossible to breach.
ā ā¦
4/ š So what about the next line in the Articles, that OpenAI āwill seek to open source technology for the public benefit when applicable.ā
Psst - āwhen applicableā is magic legal code for āwhenever we want.ā It could be never.
Btw, OpenAI does open sources things. Evenā¦
5/ š What about Microsoft?
The complaint say OpenAI is "a closed-source de facto subsidiaryā and "ostensibly non-profit golden goose" of Microsoft, a $3T company.
Nice rhetorical move. Meaningless legally.
Defendant's size isnāt a factor in a breach. Musk never had a dealā¦
6/ š§ How about AGI? Why is that a thing here?
A stretch, but Musk is trying to show breach from Altman removing the old board members. Remember Helen Toner and Tasha Mccauley?
Musk says without them the board can't assess whether AGI benefits the public. Musk claims GPT-4 isā¦
7/ š³ Then Musk's lawyer - Morgan Chu, known for patent trials - uses a fun analogy.
"Imagine donating to a non-profit whose asserted mission is to protect the Amazon rainforest, but then the non-profit creates a for-profit Amazonian logging company.... That's the story ofā¦
8/ āļø Also notable: Musk picked SF over Delaware. Seems strategic, tapping into local techlash sentiments. It's an interesting move, considering Musk's, uh, mixed success in Delaware courts.
#LegalStrategy
9/ š The rest of Musk's action? So many words for a lot of nothing of a case.
He underscores the societal issues surrounding the development and control of AGI, says he recruited people and helped Altman, and is worried about AGI.
End/ š "The public is still in the dark", Musk says. He calls out "the irony and tragedy" of OpenAI becoming "Closed, For-Profit AI" and says he relied on Altman's (unwritten) word about it.
But there's no contract requiring transparency or non-profit.
So, Musk loses. End.ā¦
Text of the 2015 email - thanks
@TechEmails
Of note:
ā "Good of the world" is in air quotes (!)
ā The email talks about 'significant financial upside', which means Musk knew that's how it'd be set up
ā The email says "we'd have an ongoing conversation" about open source. Akaā¦
@CeciliaZin
I lot of this feels high speculative on your part. Iām sure if it were that easy to pick apart, then maybe Elonās lawyers know something you and I do not.
None of this felt very useful, letās just wait for the ruling.
@dallin_stagg
A complaint lays out the best version of your facts. A good example of a strong case and a strong compliant in the New York Timesās complaint analyzed below.
If Elonās lawyers know more and didnāt include it, thatās either their mistake, or the extra facts are bad for Elon.ā¦
@CeciliaZin
The preponderance of tween-like verbiage and clear emotion in your summation makes me pause. Here is a good example of a professional adult version:
Lawyer here, my thoughts on the Elon Musk v Sam Altman, Gregory Brockman, and OpenAI lawsuit. I read the entire petition so that you don't have to!š
tl;dr: Elon wants the court to label GPT-4 and Q* as AGI, preventing Microsoft from profiting from these models. He additionallyā¦
@blafasel42
Good point. Winning has many vectors. Elon wins a lot, even if itās not in court and it means things like the transaction to buy X had to go through!