25 April, 2024

Elon Musk’s Legal Battle Shakes OpenAI: Worldcoin Faces Market Turbulence

02 Mar, 2024

09 Mar, 2024

  • Elon Musk claims OpenAI prioritizes profit over humanity, sparking legal action against CEO Sam Altman.
  • Following the lawsuit, Worldcoin’s value declined by 5% to $7.60
  • Musk argues OpenAI has “abandoned” their startup’s” originally promised goals.

Tesla CEO Elon Musk has initiated legal proceedings against OpenAI and its CEO, Sam Altman. According to Musk, the CEO and his team have walked away from their ‘promised goals’. This unexpected move has sent shockwaves through the tech community and financial markets. Reportedly, The OpenAI-backed project’s native token Worldcoin (WLD) token went down by 5% immediately.

Worldcoin (WLD), the cryptocurrency associated with OpenAI, witnessed a sharp 5% decline, tumbling from yesterday’s high of $8.25 to $7.6, now back up to $7.83 recovering 1.7%. The lawsuit comes at a time when Worldcoin’s token was experiencing a significant surge in value. 

Musk, a founding member of OpenAI in 2015, alleges that the organization has shifted its focus from developing artificial intelligence for the benefit of humanity to pursuing profit instead. This legal action highlights Musk’s concerns that OpenAI, under Altman’s leadership, has abandoned its noble cause. 

According to legal representatives for Musk, OpenAI’s current focus on profit goes against the initial agreement and spirit of the organization. Musk’s lawyers also claimed that OpenAI’s partnership with Microsoft violated an agreement to make a major AI breakthrough “freely available to the public. The lawsuit further stated that OpenAI was developing a proprietary technology that will maximize profits for them. The lawsuit also mentioned,

To this day, OpenAI, Inc.’s website continues to profess that its charter is to ensure that AGI ‘benefits all of humanity’,” it adds. “In reality, however, OpenAI, Inc. has been transformed into a closed-source de facto subsidiary of the largest technology company in the world: Microsoft.

Altman has been a prominent figure in the AI industry and he was recently reappointed as the CEO of OpenAI. This decision comes after a period of controversy surrounding his exit from the company. However, Altman’s return has been met with enthusiasm, with many drawing comparisons to Steve Jobs’ historic return to Apple in 1997. 

However, Altman’s return has not been without its challenges. Now, Musk’s legal team has alleged that there have been breaches of the original contract, which could potentially bring further scrutiny to OpenAI’s leadership.



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