Elon Musk sues OpenAI and its CEO. Here's why.

Since its launch of ChatGPT in 2022, arguably no company has been more talked about or had more momentum, than OpenAI. The brainchild of Sam Altman, the company is often linked to Elon Musk — an initial investor in the company.

But now, nearly six years after he was forced out of the company he was largely funding, Elon Musk has sued OpenAI and its CEO claiming that its relationship with Microsoft violates its original nonprofit mission.

What does the lawsuit allege?

The complaint was filed last week in California state court and said that OpenAI’s $13 billion relationship with Microsoft violated the company’s founding charter — which would mean a breach of contract.

The claim also takes issue with OpenAI’s secrecy and concludes by asking for a jury trial and for the company, Altman and co-founder Greg Brockman to pay back the profit they received from the business.

From the beginning, OpenAI has been weary about the potential dangers of what's called artificial general intelligence — or AI that is smarter, or as smart as a human.

Musk claims that OpenAI has reached this point and thus their relationship with Microsoft violates a founding principle designed to protect users and consumers.

Musk has his own AI company and various ties to Texas

Elon Musk also has his own AI company.

Founded in 2023, xAI is the tech mogul's answer to his previous company’s work as he hopes to develop AI through a nonprofit model.

Musk is known for having many companies headquartered in the Lone Star State, but xAI is not one of them as it is based in the Bay Area where he also operates X — formerly known as Twitter.

Even though xAI isn’t based in Texas, the last decade has shown an increased interest in the state from Musk — likely for land and tax purposes. Beyond Tesla, which has been headquartered in Austin for a number of years now, Musk is running the Boring Company and SpaceX largely from the state.

Moreover, Musk has moved employees from Neuralink and X — where a moderation team is coming to the state — to Texas in recent years.

Beck Andrew Salgado covers trending topics in the Austin business ecosystem for the American-Statesman. To share additional tips or insights withSalgado, email Bsalgado@gannett.com.

This article originally appeared on Austin American-Statesman: Elon Musk sues former venture, OpenAI