1 00:00:00,000 --> 00:00:06,040 The billionaires are fighting, again. Elon Musk, the billionaire founder of Tesla, 2 00:00:06,040 --> 00:00:12,000 SpaceX, PayPal, and numerous other companies is suing OpenAI, a company he helped found. 3 00:00:12,000 --> 00:00:16,920 Today on Uninvested, I'm going to break down everything you need to know in 5 minutes. 4 00:00:16,920 --> 00:00:25,680 On February 29th, Elon filed a lawsuit with the California Superior Court in San Francisco 5 00:00:25,680 --> 00:00:31,680 against OpenAI and its CEO, Sam Alvin. Musk accuses the company he helped found of 6 00:00:31,680 --> 00:00:35,960 abandoning its mission to develop artificial intelligence for the benefit of humanity, 7 00:00:35,960 --> 00:00:40,360 instead prioritizing profits, particularly through its partnership with Microsoft. 8 00:00:40,360 --> 00:00:46,080 The lawsuit centers around allegations of breach of contract and aims to compel OpenAI 9 00:00:46,080 --> 00:00:51,440 to make its research and technology publicly available, preventing financial gains from 10 00:00:51,440 --> 00:00:56,200 Microsoft or any individual from OpenAI's assets, including GPT-4. 11 00:00:56,200 --> 00:01:02,160 And fun fact, Musk tweeted on Twitter, or exes it's now called, that he'll drop the lawsuit if 12 00:01:02,160 --> 00:01:07,520 OpenAI renames itself as closed AI. This is not a joke, go look it up. 13 00:01:07,520 --> 00:01:14,400 Musk's dissatisfaction over OpenAI's trajectory date back to 2017 when he attempted to take 14 00:01:14,400 --> 00:01:19,520 control of OpenAI to convert it into a commercial entity in partnership with Tesla, 15 00:01:19,520 --> 00:01:24,760 but faced resistance from alt-minute other founders. He asked that OpenAI merge with 16 00:01:24,760 --> 00:01:28,480 Tesla so that it could be properly funded to continue its advancements with AI. 17 00:01:28,480 --> 00:01:35,000 However, Musk then resigned from the board in 2018, setting a desire to focus on Tesla's own AI 18 00:01:35,000 --> 00:01:40,000 projects. Legal experts have expressed skepticism about the strength of Musk's case, pointing out 19 00:01:40,000 --> 00:01:45,080 challenges in proving breach of contract based on oral promises or emails that may not constitute 20 00:01:45,080 --> 00:01:50,920 a formal contract. Musk's own AI venture, XAI, has been seen as a competitor to OpenAI, 21 00:01:50,920 --> 00:01:55,880 offering a chat GPT rival named Grok. This legal battle underscores Musk's 22 00:01:55,880 --> 00:02:00,760 ongoing concerns about the pace and direction of AI development, fearing that without proper 23 00:02:00,760 --> 00:02:06,320 governance, AI could pose existential risk to humanity. OpenAI's response to the lawsuit, 24 00:02:06,320 --> 00:02:11,640 as per internal memos and leaked emails, suggests that the claims may stem from Musk's regret about 25 00:02:11,640 --> 00:02:16,200 his current non-involvement with the company. The company released numerous old emails between 26 00:02:16,200 --> 00:02:23,960 founders, board members, and Elon. In one, he said that OpenAI had a 0%, not even 1% chance of being 27 00:02:23,960 --> 00:02:30,320 successful and reaching AGI. AGI, artificial general intelligence, is the ultimate goal of AI, 28 00:02:30,320 --> 00:02:35,920 where the AI is able to complete tasks and learn with no difference from a human. We are still 29 00:02:35,920 --> 00:02:41,920 not there yet. This lawsuit is not just a legal battle, but a pivotal moment in the discourse on 30 00:02:41,920 --> 00:02:48,360 AI's future, its governance, and overall business structure. For context, OpenAI began as a 31 00:02:48,360 --> 00:02:54,400 non-profit entity but eventually converted to a for-profit entity 3 years later. They claimed 32 00:02:54,400 --> 00:02:59,600 that this necessary conversion was so they could raise a lot of money. And I mean, a lot. They had 33 00:02:59,600 --> 00:03:06,760 the goal of raising $1 billion in donations as a non-profit but only reached $135 million. But when 34 00:03:06,760 --> 00:03:12,960 a technology like ChatGPT can be leveraged to make a profit, investment pours in. Microsoft alone 35 00:03:12,960 --> 00:03:18,680 invested $13 billion this past year, and Musk claims this should be illegal to transfer from 36 00:03:18,680 --> 00:03:24,560 a non-profit to a for-profit once you get a working technology. And I partially agree. Why 37 00:03:24,560 --> 00:03:29,160 wouldn't every company start as a non-profit, get donations and grants to build their product 38 00:03:29,160 --> 00:03:34,880 risk-free? Then as soon as the product works, they switch to a for-profit and generate $2 billion in 39 00:03:34,880 --> 00:03:41,000 revenue per year, what OpenAI will generate this year. Now you can see why Musk claims that OpenAI's 40 00:03:41,000 --> 00:03:46,000 incentives are to make money, not to better the world with AI, which can be very dangerous. 41 00:03:46,000 --> 00:03:51,240 Musk has had many long-withstanding warnings about the risks of AI while also highlighting 42 00:03:51,240 --> 00:03:56,640 complexities of aligning AI development with ethical standards and the public good. Is Musk, 43 00:03:56,640 --> 00:04:01,440 with his lawsuit, standing as the last guardian of AI for public good? Or has he missed the 44 00:04:01,440 --> 00:04:06,720 bone on how AI development needs to be funded in today's world? Maybe for-profit AI companies 45 00:04:06,720 --> 00:04:11,360 are the only way to raise enough capital to continue advancements. It's a classic tale 46 00:04:11,360 --> 00:04:17,480 about idealism versus pragmatism. Musk's venture, XAI, suggests he's not just a bystander, 47 00:04:17,480 --> 00:04:23,560 but an active participant in shaping AI's future. He's even claimed to open-source XAI's grok to 48 00:04:23,560 --> 00:04:30,480 spread the knowledge of AI. Meanwhile, OpenAI's commercial success valued at over $80 billion shows 49 00:04:30,480 --> 00:04:35,520 a different path to achieving AI advancements. This lawsuit raises broader questions about the 50 00:04:35,520 --> 00:04:41,700 future of AI. Should AI's immense potential be hardest within open-source communities? Or is the 51 00:04:41,700 --> 00:04:47,280 path to innovation paved with commercial partnerships and proprietary technologies? While the billionaires 52 00:04:47,280 --> 00:04:53,120 fight it out, the essence of this touches on how we as a society envision the future of AI. It's not 53 00:04:53,120 --> 00:04:58,240 just about Musk versus OpenAI, it's about charting the course of one of the most transformative 54 00:04:58,240 --> 00:05:04,160 technologies of our time. Stay tuned to Uninvested as we continue to follow this story. Until next 55 00:05:04,160 --> 00:05:09,120 time, keep questioning, keep learning. This is a personal video. Any views or opinions represented 56 00:05:09,120 --> 00:05:13,200 in this video are personal and do not represent those of people, institutions, or organizations 57 00:05:13,200 --> 00:05:17,640 we may or may not be associated with in a professional or personal capacity. The views 58 00:05:17,640 --> 00:05:21,720 expressed are for entertainment purposes only and not to be misinterpreted as actionable investment 59 00:05:21,720 --> 00:05:23,320 advice.