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Vinod Khosla, an Indian-American billionaire businessman and co-founder of Sun Microsystems, has criticised Tesla boss Elon Musk’s decision to sue OpenAI, calling it “a case of sour grapes”.

Artificial intelligence (AI) firm OpenAI is headed by Sam Altman. Elon Musk and Sam Altman together set up OpenAI in 2015.

Vinod Khosla was the first venture capitalist to invest in OpenAI’s ChatGPT, when the company switched from a non-profit to a private firm in 2019. Khosla is the co-founder of Sun Microsystems.

“With Elon Musk, feels like a bit of sour grapes in suing OpenAI ChatGpt, not getting in early enough, not staying committed and now a rival effort. Like they say, if you can’t innovate, litigate and that’s what we have here. Elon of old would be building with us to hit the same goal,” posted Vinod Khosla on X.

Not the one to take an attack lying down, Elon Musk responded, “Vinod doesn’t know what he is talking about here.”

Elon Musk, a former co-founder of OpenAI, filed a lawsuit against the company and its chief executive officer (CEO), Sam Altman, alleging that their collaboration with Microsoft has diverted from their original goal of creating open-source technology.

Jason Kwon, OpenAI’s chief strategy officer, pushed back against Musk’s assertion that the company is controlled by Microsoft, suggesting that Musk’s criticisms may stem from regret over not being involved with the company anymore.

Musk’s lawsuit accuses OpenAI of breach of contract and unfair business practices, seeking to compel the company to cease its association with Microsoft and Altman personally.

ELON MUSK SUED OPENAI FOR BREACH OF CONTRACT

Elon Musk filed a lawsuit on Thursday in San Francisco court against OpenAI and its CEO Sam Altman, alleging breach of contract and fiduciary duty.

Musk claims that OpenAI’s collaboration with Microsoft prioritises profits over humanity’s interests, diverging from its original mission of developing open-source artificial general intelligence (AGI).

The lawsuit demands that OpenAI and Microsoft be prohibited from profiting from AGI technology, particularly GPT-4, which is only available via subscription. Musk argues that charging for AGI tools contradicts OpenAI’s founding principles.

Musk also criticises Altman’s dismissal and reinstatement as CEO in 2023, alleging Microsoft’s influence in board decisions. Musk’s long-standing criticism of OpenAI’s commercialisation contrasts with his own AI ventures, including xAI, Neuralink, and Optimus.

There were problems between Musk and OpenAI in the past. In 2018, Musk argued for merging OpenAI into Tesla to address concerns about its lagging behind Google. When the OpenAI team resisted, Musk left the organisation, and Altman became CEO.

Musk’s dedication to AI integration in Tesla vehicles led to strained relations and his eventual departure from OpenAI.