When it comes to the world of technology and innovation, there’s never a shortage of drama and intrigue, especially among tech elites. Sometimes, the combination of excessive testosterone and ego-driven personalities leads to lawsuits that could potentially reshape the landscape of AI development (and could provide encouragement to disgraced former Uber CEO Travis Kalanick about how to handle controversies). That’s precisely what happened recently when two of the North American powerhouses in Silicon Valley filed a multi-count lawsuit against one another. The cast of characters includes Elon Musk, the driving force behind some of the biggest names in technology. Then there’s OpenAI, a fortuitous new-kid-on-the-block with a catchy name, which was co-founded by two novice tech visionaries, Sam Altman and Greg Brockman. Despite their inexperience, this nonprofit organisation, with the second biggest war chest in the tech world ($1 billion), is attempting to redefine the future of AI Research. And rarely in the annals of technology can you find a legal action in which APPLE is often barely mentioned but comes in for a cameo. So what’s all the fuss about, and why should we care? Let’s unpack this latest legal skirmish.
At the crux of this legal tussle was Org Charter eliance: Elon Musk’s attempt to apply a different operational ethos of legal entity to OpenAI. Musk, a now-gone megadonor and former board member of OpenAI, sued the AI entity, arguing that OpenAI had deviated from its supposed founding charter: to operate as a not-for-profit entity, committed to the open-source sharing of AI research and technology, in the service of the common good.
Right as the tech world was preparing for a courtroom showdown, Musk suddenly blinked. One day before a judge was set to hear OpenAI’s petition to throw out the case, Musk dropped the lawsuit. He did so with ‘leave to amend’, a legal term signalling that his complaint can be revisited by re-filing a lawsuit with better evidence to back up his claims.
Then, in a wild plot twist, Musk’s ire shifted to APPLE: Musk became concerned that OpenAI had entered some sort of business arrangement with APPLE, which he characterised as ‘a theft of the patrimony’ and an ‘unacceptable behaviour for security’. Musk has been discussing his plans to ban APPLE devices at his companies if the OpenAI integration ever does take place. Neither APPLE nor OpenAI have indicated any plans to merge, however.
Upon Musk’s claims, OpenAI responded to say that, contrary to his allegations, no founding agreement (as Musk describes it) ever actually existed. As evidenced by various forms of communication between the parties, Musk was well aware that OpenAI had moved to a proprietary, for-profit model, both because of his substantial financial interest in the enterprise and because he gave it his blessing on the condition that OpenAI be merged into Tesla or that he be given direct control over OpenAI’s future. The stream of conversation with Musk makes clear that OpenAI’s pursuit of funding culminated in its acquisition of a massive $10 billion investment from Microsoft, with Musk’s group going their separate ways, him subsequently pouring his resources into his own AI venture, Grok.
The tussle reflects fundamental discussions about who is to control, fund and benefit from AI development as technologies become increasingly opaque and unavailable beyond the realm of proprietary information.
APPLE is not necessarily a party to this particular legal fight, but its inclusion illustrates its outsized influence on the bigger picture of AI. Given the size of its ecosystem, the strength of its security, and the way it has established its own watchful presence in homes around the world, APPLE’s approach to AI co-operation, data privacy, and infiltration will have a huge impact.
APPLE, a leader in consumer technology with a keen sense for innovation, is slowly making inroads into the realm of AI. Its emphasis on protecting user privacy and creating a safe and secure infrastructure around its devices and services means that anything it does on the AI front is closely followed by onlookers. This is true whether they are conversant with Taylor Swift’s new album or not. APPLE appears to be making a commitment to a kind of ethically responsible artificial intelligence that is user-friendly rather than just user-intuitive. When Siri first made an appearance, one could hear the collective echo of teeth grinding and clenching around the world. There are sharp men in Silicon Valley who don’t want to be left behind in the great AI race.
OpenAI and Elon Musk – who has so far backed off from the legal fight, with APPLE serving as his proxy – represent the ideological differences around AI development coming to a head. And while Musk has backed off on his legal challenge for now, it seems only a matter of time before the dust settles and the real meat of the argument unravels in the court of public opinion. The path that tech giants chart will not only decide the nature of artificial intelligence, it will be a decisive factor in setting the moral, economic and social framework in which we will live with AI.
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