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Hollywood's Big Shot Joins Musk's AI Battle
Saturday, February 15, 2025
Musk's offer is for the for-profit arm of OpenAI, not the nonprofit. Emanuel clarified that there have been misunderstandings about this. He also pointed out that OpenAI's leadership is involved in both the for-profit and nonprofit sides, which could be a conflict of interest.
Emanuel also mentioned that OpenAI made $1. 6 billion in revenue in 2023, but the charity only received $5 million. He thinks that this is a sign that the current leadership is not prioritizing the charity's mission.
In January, a lawyer for Musk sent a letter to the attorneys general in California and Delaware, asking for an open bidding process for the sale of the nonprofit that oversees OpenAI. Musk's ties to OpenAI go back to 2015, when he co-founded the company with Altman. He left the board in 2018 due to a potential conflict of interest with Tesla.
Last year, Musk reignited a legal battle against OpenAI over its for-profit pivot. He alleged fraud and breach of contract, saying he was swindled when he invested roughly $45 million into the AI venture. Musk believes that Altman illegally partnered with Microsoft to establish a web of illicit affiliates and plunder its nonprofit arm of assets and staff in violation of their deal.
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