OpenAI responds to Elon Musk's lawsuit

OpenAI is seeking to dismiss all claims in Elon Musk's recent lawsuit, alleging the organization has strayed from its nonprofit mission. In a blog post, OpenAI revealed emails from 2015 where Musk highlighted the significant costs associated with developing AI technology. After contributing $45 million, Musk advised OpenAI to aim for a $1 billion funding target. Despite only raising $90 million so far, Musk offered to bridge the gap by covering any shortfall from other donors. "As we discussed a for-profit structure in order to further the mission, Elon wanted us to merge with Tesla(TSLA) or he wanted full control," OpenAI said. "Elon left OpenAI, saying there needed to be a relevant competitor to Google/DeepMind and that he was going to do it himself." In 2017, OpenAI and Musk agreed that a for-profit entity was necessary for funding. Musk initially sought majority equity, board control, and CEO role, but withheld funding during negotiations. After this fell through, he proposed merging with Tesla for financial support, stating it was the only way to compete with Google. In a 2018 email, Musk emphasized that raising hundreds of millions wouldn't suffice, insisting on immediate annual funding in the billions or abandoning the project.

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