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Elon Musk Sues OpenAI and Sam Altman

March 05, 2024 / 10:12

This episode discusses Elon Musk's lawsuit against OpenAI and CEO Sam Altman, alleging breach of contract and fiduciary duty. The hosts analyze Musk's motivations and the potential impact on OpenAI.

The conversation features insights from Jason Quan, OpenAI's Chief Strategy Officer, who suggests Musk's claims stem from regret over his departure from the company. The hosts criticize Musk's legal actions as baseless and detrimental to innovation.

Scott shares a personal anecdote about regretting a stock sale, comparing it to Musk's situation. He emphasizes that Musk's lawsuit appears to be an attempt to regain control and influence over AI.

The hosts express concerns about the chilling effect of Musk's litigation on business and innovation, likening it to tactics used by other wealthy individuals. They argue that such lawsuits can harm smaller companies and the economy.

Overall, the episode critiques the motivations behind Musk's lawsuit and its implications for the tech industry, highlighting the need for accountability and ethical practices in business.

TLDR

Elon Musk sues OpenAI, claiming breach of contract; hosts critique motivations and potential impacts on innovation.

Episode

10:12
00:00:00
Elon Musk is suing open Ai and its CEO Sam mman saying they abandoned the company's original Mission to develop AI
00:00:05
for the benefit of humanity and not for profit in the lawsuit musk accuses opena
00:00:09
and Alman of being in breach of contract and violating fiduciary duty and asks that opena be required to open up its
00:00:16
technology to others Opia is pushing back against musk in the lawsuit and an internal memo to employees Chief
00:00:21
strategy Officer Jason Quan who I happen to know writing we believe the claims in
00:00:26
the suit may stem from elon's regrets at not being involved with company today I
00:00:30
think that essentially translate to what a loser I think I believe that's their
00:00:34
attitude there at opena in fact I know it is um first of all as I said on X for those not a lawyer my summary tough
00:00:40
toenails AI Karen ven note kosla who's an investor in opena posted about the
00:00:44
suit saying it feels like a bit of sour grapes um most lawyers that have written
00:00:49
about it says there's no merit it's not a contract this was not a contract and
00:00:53
and it's just a lot of grievance by Elon Musk most contract lawyers think it's
00:00:58
not but Elon always said you know does a pitch over the over the plate and an attempt lawsuits are his thing are his
00:01:04
love language um what do you think about uh the the lawsuit Scott I had coffee with Ted Sandos a few weeks ago by the
00:01:12
way a lovely guy and about 12 years ago I bought what was for me a lot of stock of Netflix I think 12 bucks a share and
00:01:23
it fell to 10 in December so I sold it to take the tax loss and I never bought back in and now what is it at 500
00:01:30
and I remember sitting there as I was talking to Ted thinking as lovely as he is if I owned a [ __ ] ton of shares right
00:01:36
now I would like him so much more and but here's the thing I'm not going to sue the company because I
00:01:44
[ __ ] up and made a bad decision and lost a lot of money and power and that's
00:01:49
all this is there is no agreement stating between them and Elon Musk stating how they would operate the
00:01:56
company he left the company these were his decisions he tried to take over and then was rebuffed and left but go ahead
00:02:03
this is literally a a a child stamping his or her feet because they quit the team and then the team goes on to the
00:02:10
national finals and so they get Daddy they sue the team yeah I mean there's this is legally laughable except for the
00:02:18
part when you have a billionaire when you have a billionaire with armies of lawyers he will harass
00:02:25
them and he will make their lives more difficult this makes this make this slows down Commerce it slows down
00:02:31
Innovation and it is it is literally harassment by litigation there is no legal Merit here there is no business
00:02:38
principle here it is it is a guy going wait I control space I sort of control Eves I can't believe I [ __ ] up and I
00:02:46
don't control AI I know I'll sue them yeah yeah is there anything bad about
00:02:50
it's interesting I've talked to people there and they're this is the I mean
00:02:53
they wanted that memo out there obviously the node's been very aggressive and very like [ __ ] this guy
00:02:59
essentially um and you know I think they're basically he's just he's just feels like
00:03:04
a loser and he's not the cool kid he's not the cool kid in Ai and he was there
00:03:08
early that's for sure for hundred I was he talked about it extensively 10 years
00:03:13
ago but he definitely got made a power play as he is want to do this is one of his moves at every company he's been at
00:03:19
he always makes a power play and either gets rebuffed or he wins um often gets rebuffed his early companies he
00:03:25
certainly did and this is what he did here and he didn't win and he's trying
00:03:29
you know put light onto he's backing the people who were against Sam Alman he's
00:03:34
been backing them a lot of people feel he was involved in the in the attacks on Sam for sure um I wouldn't I wouldn't
00:03:41
put it past him um and and that uh and that he's just mad about it you know he's just wants to be in it and his
00:03:48
grock is not doing as well although he has tons of he has tons of chance with Twitter I guess um but it regrets
00:03:56
regrets is a nice way of saying you're a loser um I think in the in the thing
00:03:59
thing but does it does is it bad for open AA even if it doesn't go to trial I
00:04:03
mean he's being pushed back in his other trials um uh there could be some inner
00:04:08
workings revealed in the discovery thing and of course Microsoft partnership um you know there's proprietary technology
00:04:16
here is there any risk at all sure there's it I mean you have a company that's trying to move a million
00:04:23
miles an hour that has a ton of different considerations while they think about effects on Humanity managing
00:04:29
High Growth Company track I mean this is Sam Alman has a difficult job and all this does is it says okay I have no
00:04:38
justification I'm just going to distract you and make things harder for you so it
00:04:43
absolutely damages open Ai and and judges if they do their job will dismiss this type of lawsuit quickly to say you
00:04:52
are getting in the way of Commerce and there's no legal basis here yeah I don't
00:04:56
you know and generally what I find generally what I find is that very wealthy people recognize their power and
00:05:05
if they have character and I I I've never bought the Trope the senator Warren or the populist Trope that rich
00:05:11
people are inherently evil I've actually found in general very wealthy people get
00:05:15
there because they have High character and they establish allies along the way like regular people and they're measured
00:05:21
around litigation or somewhat measured they don't they don't go out of their
00:05:25
way to sue people because they realize they have more money this guy sees litigation as a means of trying to True
00:05:32
up the world to his standard standard ises that s who does that sound like his standard is I should control the world
00:05:39
and let me let's just ask a global question here are we better off we're better off
00:05:46
for Elon Musk I still believe that he's been a Pioneer around EVS what he's
00:05:50
doing in space I don't think you'd want to press a button and have him disappear
00:05:53
or have him move to another country but might it be a better idea to have him doing his thing and a guy like Sam Alman
00:06:00
who thus far strikes me as very thoughtful controlling the the most important company in AR or would we want
00:06:06
Elon mus to control it yeah there's he's trying to [ __ ] with them that's all he's
00:06:11
doing and and it'll work they already are we're already talking about it some
00:06:15
some embarrassing things might come out and not only that he's Pro Sam Alman and
00:06:19
key principles to this company and key funders are probably a going to have to spend time in court or give depositions
00:06:26
and also they're going to have to be very careful about anything they do or say it'll pull back their risk
00:06:34
aggressiveness which is which is part of being an entrepreneur and growing a a business this is just it's bad for the
00:06:40
economy it's it's bad for business it sets the wrong precedent for other
00:06:44
people it's I mean it's just it really is this is what Trump does too the
00:06:49
lawsuits the grieve Eng grieved lawsuits it's it's it's a it's a thing he's
00:06:53
moving so there was a good article in the times about how close by David French about how close Elon and Trump
00:06:58
are to magga like this idea of agreement and lawsuits and anger and this and that
00:07:03
it was interesting I it's just he's such a loser I unfortunately I think this
00:07:06
type of this type of aggressive litigation is effective in the sense that it just places a chill over society
00:07:13
and business yeah he likes to do it you know I'd rather I mean it's just
00:07:18
everybody right when billionaire it started with Peter teal deciding to put a media company out of business because
00:07:24
he had a ton of money this kind of stuff puts a chill on journalists it puts a chill on investors it puts a chill on
00:07:32
CEOs I mean it it it's just not it's it's not the way I I don't know how you although I
00:07:39
have noticed more people pushing back open a pushed back really hard I I Alex Stamos is doing one of my interviews in
00:07:47
San FR in Seattle and he wasn't talk he wasn't talking publicly before you know
00:07:52
what I mean because he they have the lawsuit by Elon Elon goes around suing everybody like to try to shut them up
00:07:58
and I think people are like like [ __ ] you like essentially but still it causes
00:08:02
money it's expensive it it uh it creates all kinds of like issues two two-thirds
00:08:08
of jobs are created by small and medium-sized businesses MH if you're say he just starts and I think he's already
00:08:14
done this say he just any competitor first off he called for an AI pause publicly because supp he's concerned
00:08:20
about the fate of the world and it comes out he was trying to catch up that he was going full force with his own AI
00:08:26
efforts and had no interest in pausing but if if big companies just start suing and to be clear big Tech is guilty of
00:08:34
this they just start suing small companies left and right they can put them out of business it's really
00:08:40
propulsive the small company can't it's difficult for the small company to wait
00:08:44
around for the Judgment it's difficult for them to recruit employees do you know what it's like to raise money under
00:08:50
the ospice of a of a of a lawsuit filed by Elon Musk or quite frankly a lot of these companies including some of our
00:08:59
favorites Apple Amazon are very quick to send cease and toist letters when I left
00:09:05
my last company I wanted to start another company they immediately started sending me letters and I'm like okay I
00:09:13
want to work I'm not going to compete with you but I'd like to work and in
00:09:18
their view it was unless you sit around and do nothing for the rest of your life
00:09:24
in our view you're competing with us that's how it came across to me and
00:09:28
we're going to hire this really angry mean law firm and the only reason they
00:09:34
back down is cuz I'm rich yeah and they know I can defend myself yeah but what
00:09:39
if it was TW 10 years ago or 20 years ago when I didn't have the money and I
00:09:43
was trying to start companies I would have I wouldn't have been able to raise
00:09:46
money I I would have just backed down from this big bad Corporation who had absolutely no legal Merit none
00:09:55
whatsoever every lawyer I talked to said yeah you're going to win this but it's
00:09:58
going to cost you a bunch of money what if I didn't have a bunch of money yeah
00:10:02
it's a it's a nuisance it's a nuisance lawsuit anyway Elon get some therapy

Episode Highlights

  • OpenAI's Response
    OpenAI pushes back against Musk's claims, suggesting they stem from his regrets.
    “We believe the claims may stem from Elon’s regrets.”
    @ 00m 21s
    March 05, 2024
  • Legal Opinions on the Lawsuit
    Most lawyers see no merit in Musk's lawsuit, viewing it as grievance-driven.
    “Most lawyers think it’s not a contract.”
    @ 00m 49s
    March 05, 2024
  • Impact on Innovation
    The lawsuit is seen as a distraction that could hinder OpenAI's progress.
    “This absolutely damages OpenAI.”
    @ 04m 47s
    March 05, 2024
  • The Chill of Litigation
    Aggressive lawsuits create a chilling effect on business and innovation.
    “This type of aggressive litigation is effective in the sense that it just places a chill over society.”
    @ 07m 11s
    March 05, 2024

Episode Quotes

  • Elon always said lawsuits are his love language.
    Elon Musk Sues OpenAI and Sam Altman
  • This is literally a child stamping his feet.
    Elon Musk Sues OpenAI and Sam Altman
  • This makes this slows down Commerce, it slows down Innovation.
    Elon Musk Sues OpenAI and Sam Altman
  • It’s just bad for the economy, it’s bad for business.
    Elon Musk Sues OpenAI and Sam Altman
  • Elon get some therapy.
    Elon Musk Sues OpenAI and Sam Altman

Key Moments

  • OpenAI's Defense00:21
  • Legal Opinions00:49
  • Impact on Business06:40
  • Chilling Effect07:11

Tension Over Time

Words per Minute Over Time

Vibes Breakdown