Most of their tech is not open source and not open to the public.

In fact, to use their AI, the only thing that opens is your wallet.

I don't think Elon Musk would disagree when I say there's nothing wrong with making money.

But when he formed OpenAI with Sam Altman, Greg Brockman and others back in 2015, it wasn't supposed to be this way.

Its mission as a nonprofit was to make AI freely available for the benefit of humanity.

But according to Elon and his lawyers, their partnership with Microsoft is mad sus and straight up whack.

They ain't even cap it when they say OpenAI is giving out some straight up "nope vibes" and filed a bombshell lawsuit yesterday, alleging that this ain't it fam.

It is March 2nd, 2024, and you're watching the Code Report.

You might know Elon Musk as the second richest man in the world and the guy behind the second fastest production car in the world.

But Elon was also a founding member of OpenAI when the charter stated that resulting technology will benefit the public and the corporation is not organized for the private gain of any person.

But in 2019, after they realized how much motherfucking money they could make from this thing, they tweaked the corporate structure of it.

OpenAI, Inc is still a nonprofit, but it wholly owns and controls an LLC.

That LLC controls a holding company which is a majority owner in OpenAI global LLC, a capped profit company.

And that entity has received a massive investment from Microsoft and all this is overseen by a highly diverse board which currently has three members, Brett Taylor from Salesforce, Adam Dangelo from Facebook and Larry Summers from Washington.

It may not diverse in color or gender identity but people from Facebook, Salesforce and the US government tend to be extremely trustworthy, said no one ever.

But the structure change was effective.

Now in 2024, OpenAI is the world's most valuable AI startup with a valuation that currently sits at 86 billion.

It seems like Sam Altman and Elon Musk are friends like Sam recently shamed Tesla haters.

So why is Elon doing them dirty like this?

It's almost as bad as what Lil Rod's doing to Diddy right now.

It's unfortunate this isn't a hip-hop channel because the stuff in that lawsuit is off the charts insane.

In Elon's lawsuit, though, it talks about how OpenAI has been transformed into a closed-source subsidiary of Microsoft and says the new board is refining an AGI to maximize profits from Microsoft, not the benefit of humanity.

It says, "This was a stark betrayal of the founding agreement."

And to be honest, he's got a pretty good point there.

Elon left the board back in 2018 and he was actually offered a stake in the for-profit arm and to his credit, he refused to accept it.

And this actually sets him up for a very nice hero art in this iteration of the simulation.

Elon has donated over $44 million to OpenAI since 2016.

And because they broke the sacred oath, he now has a valid reason to file this lawsuit and seek out some kind of remedy.

The idea that OpenAI and Microsoft are one and the same requires some really strong copium to deny.

Saudi Nutella (Satya Nadella), CEO of Microsoft, recently said this, "If OpenAI disappeared tomorrow, we have all the IP rights and all the capability.

We have the people, we have the compute, we have the data, we have everything. We are below them, above them around them."

Even though Microsoft technically doesn't control OpenAI, they clearly have an overwhelming amount of influence.

Now, another interesting thing in Elon's lawsuit is that it says models like GPT-4 constitute Artificial General Intelligence and says OpenAI is developing something called Q star that has an even stronger claim to AGI.

Elon is known for making wild predictions about space and technology that are almost always wrong.

But one thing's for sure, the discovery in this lawsuit will be epic.

Ultimately, a lawsuit like this could be a great thing for humanity but realistically and I'm no lawyer, its probability of actually working seems extremely low.

As some random guy on the internet, I base that legal opinion on absolutely nothing but Musk has taken some pretty big legal L's recently, like when Delaware took away his $55 billion pay package.

But Elon is right. OpenAI should be open and Microsoft the world's most valuable company by a wide margin now doesn't need any more power.

But as the great Jon Bon Jovi once said, "The more things change, the more they stay the same."

This has been the Code Report.

Thanks for watching and I will see you in the next one.