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Elon Musk vs OpenAI: What no one's talking about 🫣

Elon Musk vs OpenAI: What no one's talking about 🫣

🤔 Impact of OpenAI vs Musk, our Claude-3 review, Big Tech unites for responsible AI and more

Everyday AI
March 05, 2024

Sup y'all 👋

Today’s the last day. 🚨

In case you missed it, we're giving away a YEAR of Taplio, our favorite AI-powered tool to grow on LinkedIn.

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Jordan

Outsmart The Future

Today in Everyday AI
8 minute read

🎙 Daily Podcast Episode: Elon Musk is suing OpenAI for straying from its mission. Is he right? Or is this a PR stunt? We dive in with some spicy hot takes for #HotTakeTuesday 🔥! Give it a listen.

🕵️‍♂️ Fresh Finds: An AI habit coach, Perplexity to reach $1B valuation, and AI losing public trust. Read on for Fresh Finds.

🗞 Byte Sized Daily AI News: Big Tech unites for responsible AI, AMD facing issues with China chip, and Wix adds AI website builder. For that and more, read on for Byte Sized News.

🚀 AI In 5: Anthropic just released Claude 3. How does it stack up against ChatGPT and Google’s Gemini? We give you a quick review that’ll be worth your time. See it here

🧠 Learn & Leveraging AI: We’re breaking down the most important takeaways from the Elon Musk vs OpenAI lawsuit. Keep reading for that!

↩️ Don’t miss out: Did you miss our last newsletter? We talked about Claude 3 challenges ChatGPT, AI-generated Trump images, and Microsoft Copilot plans explained. Check it here!

What the Elon Musk vs. OpenAI lawsuit actually means 🧑‍⚖️

Elon Musk is suing OpenAI?

Yep.

But why?

Well Elon is claiming that OpenAI is abandoning its mission of putting the public before profit.

Does Elon have a point? Or is this just some useless drama?

We're diving in and taking a look.

Join the conversation and ask Jordan questions on Elon Musk vs OpenAI here.

Also on the pod today:

• Background and Changes in OpenAI 🔀
• Implications of OpenAI's Shift in Focus 🤔
• Reactions and Predictions on the Lawsuit 🧑‍⚖️

It’ll be worth your 44 minutes:

Listen on our site:

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Upcoming Everyday AI Livestreams

Wednesday, March 6th at 7:30 am CST ⬇️

The Dispersion of AI Jobs Across the U.S. - Why it matters

Here’s our favorite AI finds from across the web:

New AI Tool Spotlight – Habitomic is an AI habit coach, vocalo helps you become fluent in English, and SellMate is AI-powered cross-listing for your e-commerce.

Oh, and could this new AI tech from Synthflow AI change call centers completely?

Maybe

🌟 AI-powered appointment scheduling 🗓️ is LIVE! 🎉
Our Voice Agents can now autonomously handle appointment scheduling - check availability, find slots, send booking details - all in real time 🚀
🧵 (1/2)
— Synthflow AI (formerly Fine-Tuner) (@SynthflowAI)
4:42 PM • Mar 5, 2024

Trending in AI – Perplexity is set to double its valuation at $1 Billion. (We’re big fans)

AI in Politics - Several US states are looking to regulate risks and bias in AI.

AI in Society – A new survey shows that public trust in AI is decreasing.

Read This – This person tried Tripadvisor’s AI tool. Here were their pros and cons. Are you gonna use it?

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1. Tech Titans Unite to Ensure AI Benefits Outweigh Risks 🤝

OpenAI, Salesforce, and other tech giants join forces in a groundbreaking open letter stressing the need to responsibly harness the power of artificial intelligence. With industry leaders like Sam Altman emphasizing AI's potential to enhance lives, the collective call aims to strike a balance between maximizing benefits and minimizing risks.

2. AMD Faces Roadblock in Selling AI Chip to China 🇨🇳

AMD's plans to sell a specialized AI chip in China hit a snag as the U.S. government demands a license due to its power, despite being weaker than chips sold elsewhere. This move could hinder AMD's competition with Nvidia in the AI market. The U.S. is clamping down on advanced technology exports to China, impacting companies like Nvidia and AMD.

3. Arizona Rep. Pushes AI to Slash Government Regulations 🤯

Rep. Andy Biggs is making waves with a new bill aiming to cut through government red tape using artificial intelligence. This bill would see federal agencies utilizing AI to sift through regulations, targeting outdated, error-ridden, or redundant rules. With AI taking the stage in Congress, Biggs' move could revolutionize how regulations are reviewed and revamped.

4. Wix Adds AI Website Builder Chatbot 🛒

Wix has introduced a game-changer with their new AI chatbot that builds websites in a snap! Simply answer a few prompts, and voilà, your website is ready to go. This innovative tool allows you to create a website for free, with options to upgrade for more advanced features.

5. Haiper AI Making Waves in Video Generation World 🎮

Former Deepmind alums, Yishu Miao and Ziyu Wang, are turning heads with their video generation tool, Haiper AI, after raising a whopping $138 million in seed funding. The duo aims to keep features free for now to build a strong community around their product.

Does Claude 3 beat ChatGPT or Gemini?

Anthropic just released Claude 3 and it’s been claimed to be better than ChatGPT-4!

So is this true? How does it stack up against ChatGPT and Gemini?

We take a deep dive and put it to the test!

Check out today's AI in 5.

(We also did a detailed review of Claude 3 here.)

Or see this related video:

Google Gemini Ultra vs Google Bard - Google’s LLMs explained

🦾How You Can Leverage:

Elon Musk is suing OpenAI.

Here’s our hot take: it pointless.

Does he have a point with his gripes against OpenAI?

Fosho.

Do we expect anything major to come off this?

Nope.

For this week’s edition of #HotTakeTuesday, we went all-in on the gossip of the GenAI world — Elon Musk’s new legal battle with OpenAI.

First off, we’re not legal experts.

(But we did stay at a Holiday Inn Express once.)

TBH, though, the seems more like a PR stunt from Elon that a legitimate lawsuit.

More hot takes later, but let’s lay the facts out.

Here’s the long and short of it. (from non-legal experts)

Elon was a co-founder of OpenAI, which was founded as a nonprofit in 2015
He ‘donated’ reportedly between $15 million and $100 million.
Elon left his post in 2018
OpenAI’s corporate structure now includes a capped-profit entity and multiple new companies under the OpenAI nonprofit umbrella
OpenAI is now a money-printing machine and took in more than $11 billion investment from Microsoft under one of these new entities. (Not through nonprofit)
Elon is suing OpenAI for straying from its original nonprofit mission, saying they no longer operate for the benefit of humanity but have become a closed-source subsidiary of Microsoft

Whew.

Facts outta the way, let’s jump into what this all means and what you should pay attention to. 👇

1 – No receipts = no case and create 🧾️

We’re no legal experts, but we’ve read almost all of the opinions on the case from those who are.

The overwhelming takeaway?

There’s no legal contract tying Musk to OpenAI. The lawsuit doesn’t contain any exhibit to a legal contract, and uses lawyer speak to say it was ‘memorialized.’

Take it from a real legal expert below, not us:

2/ The problem is no actual contract was breached. Let me explain.
Musk combines three things and says they're the "Founding Agreement" ...
1️⃣ Talks with Altman about what OpenAI was to be
2️⃣ A 2015 email to Altman where he says
3️⃣ OpenAI’s articles of incorporation, which… twitter.com/i/web/status/1…
— Cecilia Ziniti (@CeciliaZin)
8:50 AM • Mar 2, 2024

So, that whole ‘no real contract’ thingy makes Eon’s whole case forward kinda sticky, right?

Also, how and why would anyone invest tens of millions into a nonprofit, knowing the irrefutable outcome of said nonprofit’s work would surely become one of the most commercialized products in the history of humanity?

Not adding up.

Try this: Read this scathing article from The Verge, aptly titled, “Elon Musk’s legal case against OpenAI is hilariously bad”

(Agree, Verge. Agree.)

2 – Vagueness = Open Interpretation 🧑‍⚖️

Even though there is no legal contract provided by Elon’s lawyers, they still hammer home how unfair OpenAI’s actions are.

We get it. And agree with many points.

Like we said in today’s show, two things can be true:

Elon can have legitimately gripes and great points
Elon’s lawsuit can be more theatrics than substance

Elon’s legal team cites OpenAI’s Certificate of Incorporation, and tries to pick it apart.

Swings and misses.

Two key statements from the Certificate of Incorporation kinda throw huge shade over any argument from Team Elon.

One the first page (read whole agreement here), let’s look at this phrasing:

“The resulting technology will benefit the public and the corporation will seek to open source technology for the public benefit when applicable.”

Both parts of this statement, headliners in the beginning of OpenAI’s Certificate of Incorporation, are overwhelming vague. So, tough for team Elon to argue against these.
“Will benefits the public” (Open to interoperation by OpenAI)
“When applicable” (Who decides this? OpenAI. They could only say it’s applicable when someone pays them $100 trillion dollars.)

Try this: Bloomberg takes a deeper dive on the vagueness of the contract, and even more from point #1 above.

3 – Money and Competition 🤑

Follow the money.

You know, that $15-$100 million that Elon “donated” to OpenAI way back when?

If that money was a traditional investment into a for-profit startup, it’d probably be worth billions.

So we get that side and feel the frustration and understand why Elon would wanna take some sort of legal action.

Buuuuuuuut, the donation at the time was reportedly into a 501(c)(3) nonprofit. So, not exactly a donation into a for-profit startup.

Also, you gotta look at what Elon has to gain by throwing smoke in the air above OpenAI and Microsoft.

Have you seen what Elon’s been Tweeting the past few weeks?

(Or Xing or whatever it’s called now?)

He’s been dragging AI companies like OpenAI, Microsoft and Google at will, trying to knock down their AI products and hype up the negative impact they can have.

Why?

His AI products have a lot to gain.

Elon’s X.AI and Grok chatbot are direct competitor to OpenAI and its flagship product, ChatGPT.

And Grok isn’t exactly winning any awards.

(We called this last year, when we said shortly after its release that Grok would be the AI chatbot with the most hype that no one uses.)

Here’s how we see it — Elon is using this lawsuit as a (far-stretched) way to try and keep his competitors at bay.

Not only is Grok chasing ChatGPT (from WAY far back) but Elon is also in a race with OpenAI and Microsoft-backed Figure AI.

Tesla’s impressive humanoid robot, Optimus Gen 2, is in a head-to-head battle with Figure AI’s humanoid bot, Figure 01.

So look past the lawsuit to the dollars.

It’ll all make sense.

Try this: On top of this long recap, we didn’t even have the time or the space to take on one of Team Elon’s claims — OpenAI witholding AGI. Luckily, Wired did a good job of tackling that issue.

⌚

Numbers to watch

$1 Billion

Perplexity is finalizing a new funding deal that’ll set its valuation at $1 Billion.

Now This …

Let us know your thoughts!

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