OAI "TERMINATOR" [BREAKING LEGAL BIG] : Elon Musk & His Legal Avengers
Elon Legal Superheroes v. Sama Supercars
Dear readers,
I have been promising for a while to do a piece on the pending federal suit by Elon Musk (an individual) versus Sam Altman and Open AI which, among other things,
a) seeks to place ALL the profits of OAI in a “constructive trust”, and
b) seeks to void OAI agreement with Microsoft — no small deals indeed.
This suit follows the 2024 March-June (Elon dismissed) former San Francisco Superior Court case which I previously reported on.
It helps to explain what I said earlier this week in a prior video, the not-for-profit vector of OAI (with Billions of revenue in the balance, and in the regulatory scope) at issue and Elon’s attorneys are pushing the issue for all it is worth — and based on public changes and statements of OAI it is worth quite a bit!
And now we have information substantiating that those who left OAI may have literally fled, truly, out of fear of what was beginning in the dogged heat of Discovery from a very accomplishes opponent w several many scalps on the wall…
Here is a Summary:
New Federal Lawsuit Filed
Elon Musk has filed a new lawsuit against OpenAI, Sam Altman, and Greg Brockman in federal court in Northern California on August 5, 2024
This lawsuit revives the legal battle that Musk had previously initiated and then withdrawn.
Allegations in the New Lawsuit
The new lawsuit makes several key allegations:
Suit values OAI at 100B
Musk claims he was manipulated and misled by Altman and Brockman into co-founding OpenAI as a nonprofit venture
Says OAI/Sama lied about being a NON-PROFIT (see the SUPERCAR, below)
The lawsuit accuses the defendants of breaching the Racket Influenced Corrupt Act, engaging in fraud, violating contract terms, committing false advertising, and participating in unfair competition
Musk alleges that Altman and his associates, along with Microsoft, created a "convoluted network of for-profit OpenAI affiliates" and engaged in "widespread self-serving practices"
The lawsuit characterizes the alleged betrayal and deception as being "of Shakespearean proportions"
Scope and Demands of the Lawsuit
Musk is seeking to recover billions of dollars
The lawsuit requests a constructive trust on the defendants' "ill-gotten gains, property, and assets traceable to Musk's significant contributions to OpenAI"
It also seeks a judicial determination that OpenAI's license to Microsoft is null and void
Note: this license (learned in the previous SF Superior Court suit) concerns the “hot” technology known as ‘Strawberry’ — previously known as ‘Q*’
Context and Background
This new lawsuit follows a previous one that Musk filed in California state court earlier in 2024, which he withdrew in June without explanation
The new federal lawsuit is nearly double in length compared to the original and includes claims of racketeering activity
Moving to federal court expands the amount of claims and geographic and substantive reach of the case, as well as damages
Musk's lawyer, Marc Toberoff*, stated that the lawsuit "bursts Defendants' hot-air philanthropy and holds them accountable for their misrepresentations to Musk and the public" Much ado with Toberoff and Team (see below)…
OpenAI's Previous Response
While OpenAI has not yet responded to this new lawsuit, their reaction to the previous lawsuit was to call Musk's claims "incoherent" and "frivolous"
They had also published old emails from Musk that appeared to contradict some of his claims
This case continues to highlight the ongoing conflict between Musk and OpenAI regarding the company's mission and practices in the development of artificial intelligence.
This very case underlies much of the public facing changes we see (from OAI “declaring” they will become a for-profit entity, to (as was reported here) serial departures of personnel who do not wish themselves/lives nor their careers drawn into an aggressive, long-term, invasive discovery process by a proven ream of Legal “pit bull” Avengers!
* * *
*Marc Toberoff is a BALLER copyright/media/IP attorney who has literally spent DECADES in some matters until he won!
A sample “hit parade” of “killer” Toberoff Legal Avenger work :
Superman Rights Case
Toberoff represented the heirs of Superman co-creator Jerry Siegel in a long-running legal battle against DC Comics and Warner Bros. over the rights to the Superman character. This case lasted for over a decade and involved complex copyright termination issues. (N.B. to persist for over a decade really is something)
Marvel Characters Litigation
He represented the estate of Jack Kirby, co-creator of many iconic Marvel characters, in a lawsuit against Marvel Entertainment. This case involved attempts to reclaim copyrights for characters like the X-Men, Fantastic Four, and the Hulk.
"The Dukes of Hazzard" Case
Toberoff represented the heirs of the creator of "The Dukes of Hazzard" television series in a copyright dispute with Warner Bros.
"Friday the 13th" Franchise
He represented the original screenwriter of "Friday the 13th" in a copyright termination case against the producers, seeking to reclaim rights to the franchise.
James Brown Estate
Toberoff has represented the children of James Brown in various legal matters related to the late singer's estate and intellectual property rights.
Ray Charles Foundation
He has worked with the Ray Charles Foundation on copyright and intellectual property issues related to the late musician's work.
"The Terminator" Rights
Toberoff was involved in representing the interests of Gale Anne Hurd, a producer and co-writer of the original "Terminator" film, in a complex rights dispute.These cases demonstrate Toberoff's focus on representing creators and their heirs in copyright termination and intellectual property disputes, often against major entertainment companies. His work has significantly impacted entertainment law, particularly in areas related to copyright duration and termination rights.
* * *
You can read the Bloomberg Law report on the federal case here.
*Finally, have reason to believe that footage captured of Sam Altman tooling around Napa in a 5M Swedish Supercar [Koenigsegg Regera 1500hp hybrid only 80 were made] may have been developed (and anonymously released) by a Plaintiff’s counsel legal asset involved in the suit…..
= just the type of precisely/exactly damaging and timing-suss release in this case about a (“fake”) posing as a “non-profit” company for ‘personal enrichment’ dispute case…………………………………………………..
Make no mistake, even in AI-land, often the old-fashioned “gumshoe” ‘private eye’ can throw gems into the PUBLIC eye!
No small deal, who knew he was there (would be there)? Who released the video….? See the embarrassing/damning 10 second video here
It is called “playing for keeps.”
AI Counsel take: OAI is down bad atm, fams.