Musk, who founded his own AI startup xAI in 2023, has recently stepped up efforts to derail OpenAI’s conversion.
In November, he sought to block the process with a request for a preliminary injunction filed in California. Meta has also thrown its weight behind the suit.
In legal filings from November, Musk’s team wrote: “OpenAI and Microsoft together exploiting Musk’s donations so they can build a for-profit monopoly, one now specifically targeting xAI, is just too much.”
Kathleen Jennings, attorney-general in Delaware—where OpenAI is incorporated—has since said her office was responsible for ensuring that OpenAI’s conversion was in the public interest and determining whether the transaction was at a fair price.
Members of Musk’s camp—wary of Delaware authorities after a state judge rejected a proposed $56 billion pay package for the Tesla boss last month—read that as a rebuke of his efforts to block the conversion, and worry it will be rushed through. They have also argued OpenAI’s PBC conversion should happen in California, where the company has its headquarters.
In a legal filing last week Musk’s attorneys said Delaware’s handling of the matter “does not inspire confidence.”
OpenAI committed to become a public benefit corporation within two years as part of a $6.6 billion funding round in October, which gave it a valuation of $157 billion. If it fails to do so, investors would be able to claw back their money.
There are a number of issues OpenAI is yet to resolve, including negotiating the value of Microsoft’s investment in the PBC. A conversion was not imminent and would be likely to take months, according to the person with knowledge of the company’s thinking.
A spokesperson for OpenAI said: “Elon is engaging in lawfare. We remain focused on our mission and work.” The California and Delaware attorneys-general did not immediately respond to a request for comment.
Enlarge/ Elon Musk and Sam Altman share the stage in 2015, the same year that Musk alleged that Altman’s “deception” began.
After withdrawing his lawsuit in June for unknown reasons, Elon Musk has revived a complaint accusing OpenAI and its CEO Sam Altman of fraudulently inducing Musk to contribute $44 million in seed funding by promising that OpenAI would always open-source its technology and prioritize serving the public good over profits as a permanent nonprofit.
Instead, Musk alleged that Altman and his co-conspirators—”preying on Musk’s humanitarian concern about the existential dangers posed by artificial intelligence”—always intended to “betray” these promises in pursuit of personal gains.
As OpenAI’s technology advanced toward artificial general intelligence (AGI) and strove to surpass human capabilities, “Altman set the bait and hooked Musk with sham altruism then flipped the script as the non-profit’s technology approached AGI and profits neared, mobilizing Defendants to turn OpenAI, Inc. into their personal piggy bank and OpenAI into a moneymaking bonanza, worth billions,” Musk’s complaint said.
Where Musk saw OpenAI as his chance to fund a meaningful rival to stop Google from controlling the most powerful AI, Altman and others “wished to launch a competitor to Google” and allegedly deceived Musk to do it. According to Musk:
The idea Altman sold Musk was that a non-profit, funded and backed by Musk, would attract world-class scientists, conduct leading AI research and development, and, as a meaningful counterweight to Google’s DeepMind in the race for Artificial General Intelligence (“AGI”), decentralize its technology by making it open source. Altman assured Musk that the non-profit structure guaranteed neutrality and a focus on safety and openness for the benefit of humanity, not shareholder value. But as it turns out, this was all hot-air philanthropy—the hook for Altman’s long con.
Without Musk’s involvement and funding during OpenAI’s “first five critical years,” Musk’s complaint said, “it is fair to say” that “there would have been no OpenAI.” And when Altman and others repeatedly approached Musk with plans to shift OpenAI to a for-profit model, Musk held strong to his morals, conditioning his ongoing contributions on OpenAI remaining a nonprofit and its tech largely remaining open source.
“Either go do something on your own or continue with OpenAI as a nonprofit,” Musk told Altman in 2018 when Altman tried to “recast the nonprofit as a moneymaking endeavor to bring in shareholders, sell equity, and raise capital.”
“I will no longer fund OpenAI until you have made a firm commitment to stay, or I’m just being a fool who is essentially providing free funding to a startup,” Musk said at the time. “Discussions are over.”
But discussions weren’t over. And now Musk seemingly does feel like a fool after OpenAI exclusively licensed GPT-4 and all “pre-AGI” technology to Microsoft in 2023, while putting up paywalls and “failing to publicly disclose the non-profit’s research and development, including details on GPT-4, GPT-4T, and GPT-4o’s architecture, hardware, training method, and training computation.” This excluded the public “from open usage of GPT-4 and related technology to advance Defendants and Microsoft’s own commercial interests,” Musk alleged.
Now Musk has revived his suit against OpenAI, asking the court to award maximum damages for OpenAI’s alleged fraud, contract breaches, false advertising, acts viewed as unfair to competition, and other violations.
He has also asked the court to determine a very technical question: whether OpenAI’s most recent models should be considered AGI and therefore Microsoft’s license voided. That’s the only way to ensure that a private corporation isn’t controlling OpenAI’s AGI models, which Musk repeatedly conditioned his financial contributions upon preventing.
“Musk contributed considerable money and resources to launch and sustain OpenAI, Inc., which was done on the condition that the endeavor would be and remain a non-profit devoted to openly sharing its technology with the public and avoid concentrating its power in the hands of the few,” Musk’s complaint said. “Defendants knowingly and repeatedly accepted Musk’s contributions in order to develop AGI, with no intention of honoring those conditions once AGI was in reach. Case in point: GPT-4, GPT-4T, and GPT-4o are all closed source and shrouded in secrecy, while Defendants actively work to transform the non-profit into a thoroughly commercial business.”
Musk wants Microsoft’s GPT-4 license voided
Musk also asked the court to null and void OpenAI’s exclusive license to Microsoft, or else determine “whether GPT-4, GPT-4T, GPT-4o, and other OpenAI next generation large language models constitute AGI and are thus excluded from Microsoft’s license.”
It’s clear that Musk considers these models to be AGI, and he’s alleged that Altman’s current control of OpenAI’s Board—after firing dissidents in 2023 whom Musk claimed tried to get Altman ousted for prioritizing profits over AI safety—gives Altman the power to obscure when OpenAI’s models constitute AGI.
Enlarge/ An AI-generated image released by xAI during the open-weights launch of Grok-1.
Elon Musk-led social media platform X is training Grok, its AI chatbot, on users’ data, and that’s opt-out, not opt-in. If you’re an X user, that means Grok is already being trained on your posts if you haven’t explicitly told it not to.
Over the past day or so, users of the platform noticed the checkbox to opt out of this data usage in X’s privacy settings. The discovery was accompanied by outrage that user data was being used this way to begin with.
The social media posts about this sometimes seem to suggest that Grok has only just begun training on X users’ data, but users actually don’t know for sure when it started happening.
Earlier today, X’s Safety account tweeted, “All X users have the ability to control whether their public posts can be used to train Grok, the AI search assistant.” But it didn’t clarify either when the option became available or when the data collection began.
You cannot currently disable it in the mobile apps, but you can on mobile web, and X says the option is coming to the apps soon.
On the privacy settings page, X says:
To continuously improve your experience, we may utilize your X posts as well as your user interactions, inputs, and results with Grok for training and fine-tuning purposes. This also means that your interactions, inputs, and results may also be shared with our service provider xAI for these purposes.
X’s privacy policy has allowed for this since at least September 2023.
It’s increasingly common for user data to be used this way; for example, Meta has done the same with its users’ content, and there was an outcry when Adobe updated its terms of use to allow for this kind of thing. (Adobe quickly backtracked and promised to “never” train generative AI on creators’ content.)
How to opt out
To stop Grok from training on your X content, first go to “Settings and privacy” from the “More” menu in the navigation panel…
Samuel Axon
Then click or tap “Privacy and safety”…
Samuel Axon
Then “Grok”…
Samuel Axon
And finally, uncheck the box.
Samuel Axon
You can’t opt out within the iOS or Android apps yet, but you can do so in a few quick steps on either mobile or desktop web. To do so:
Click or tap “More” in the nav panel
Click or tap “Settings and privacy”
Click or tap “Privacy and safety”
Scroll down and click or tap “Grok” under “Data sharing and personalization”
Uncheck the box “Allow your posts as well as your interactions, inputs, and results with Grok to be used for training and fine-tuning,” which is checked by default.
Alternatively, you can follow this link directly to the settings page and uncheck the box with just one more click. If you’d like, you can also delete your conversation history with Grok here, provided you’ve actually used the chatbot before.
Enlarge/ Elon Musk, chief executive officer of Tesla Inc., during a fireside discussion on artificial intelligence risks with Rishi Sunak, UK prime minister, in London, UK, on Thursday, Nov. 2, 2023.
On Monday, Elon Musk announced the start of training for what he calls “the world’s most powerful AI training cluster” at xAI’s new supercomputer facility in Memphis, Tennessee. The billionaire entrepreneur and CEO of multiple tech companies took to X (formerly Twitter) to share that the so-called “Memphis Supercluster” began operations at approximately 4: 20 am local time that day.
Musk’s xAI team, in collaboration with X and Nvidia, launched the supercomputer cluster featuring 100,000 liquid-cooled H100 GPUs on a single RDMA fabric. This setup, according to Musk, gives xAI “a significant advantage in training the world’s most powerful AI by every metric by December this year.”
Given issues with xAI’s Grok chatbot throughout the year, skeptics would be justified in questioning whether those claims will match reality, especially given Musk’s tendency for grandiose, off-the-cuff remarks on the social media platform he runs.
Power issues
According to a report by News Channel 3 WREG Memphis, the startup of the massive AI training facility marks a milestone for the city. WREG reports that xAI’s investment represents the largest capital investment by a new company in Memphis’s history. However, the project has raised questions among local residents and officials about its impact on the area’s power grid and infrastructure.
WREG reports that Doug McGowen, president of Memphis Light, Gas and Water (MLGW), previously stated that xAI could consume up to 150 megawatts of power at peak times. This substantial power requirement has prompted discussions with the Tennessee Valley Authority (TVA) regarding the project’s electricity demands and connection to the power system.
The TVA told the local news station, “TVA does not have a contract in place with xAI. We are working with xAI and our partners at MLGW on the details of the proposal and electricity demand needs.”
The local news outlet confirms that MLGW has stated that xAI moved into an existing building with already existing utility services, but the full extent of the company’s power usage and its potential effects on local utilities remain unclear. To address community concerns, WREG reports that MLGW plans to host public forums in the coming days to provide more information about the project and its implications for the city.
For now, Tom’s Hardware reports that Musk is side-stepping power issues by installing a fleet of 14 VoltaGrid natural gas generators that provide supplementary power to the Memphis computer cluster while his company works out an agreement with the local power utility.
As training at the Memphis Supercluster gets underway, all eyes are on xAI and Musk’s ambitious goal of developing the world’s most powerful AI by the end of the year (by which metric, we are uncertain), given the competitive landscape in AI at the moment between OpenAI/Microsoft, Amazon, Apple, Anthropic, and Google. If such an AI model emerges from xAI, we’ll be ready to write about it.
This article was updated on July 24, 2024 at 1: 11 pm to mention Musk installing natural gas generators onsite in Memphis.
Continuing to evolve the fact-checking service that launched as Twitter’s Birdwatch, X has announced that Community Notes can now be requested to clarify problematic posts spreading on Elon Musk’s platform.
X’s Community Notes account confirmed late Thursday that, due to “popular demand,” X had launched a pilot test on the web-based version of the platform. The test is active now and the same functionality will be “coming soon” to Android and iOS, the Community Notes account said.
Through the current web-based pilot, if you’re an eligible user, you can click on the “•••” menu on any X post on the web and request fact-checking from one of Community Notes’ top contributors, X explained. If X receives five or more requests within 24 hours of the post going live, a Community Note will be added.
Only X users with verified phone numbers will be eligible to request Community Notes, X said, and to start, users will be limited to five requests a day.
“The limit may increase if requests successfully result in helpful notes, or may decrease if requests are on posts that people don’t agree need a note,” X’s website said. “This helps prevent spam and keep note writers focused on posts that could use helpful notes.”
Once X receives five or more requests for a Community Note within a single day, top contributors with diverse views will be alerted to respond. On X, top contributors are constantly changing, as their notes are voted as either helpful or not. If at least 4 percent of their notes are rated “helpful,” X explained on its site, and the impact of their notes meets X standards, they can be eligible to receive alerts.
“A contributor’s Top Writer status can always change as their notes are rated by others,” X’s website said.
Ultimately, X considers notes helpful if they “contain accurate, high-quality information” and “help inform people’s understanding of the subject matter in posts,” X said on another part of its site. To gauge the former, X said that the platform partners with “professional reviewers” from the Associated Press and Reuters. X also continually monitors whether notes marked helpful by top writers match what general X users marked as helpful.
“We don’t expect all notes to be perceived as helpful by all people all the time,” X’s website said. “Instead, the goal is to ensure that on average notes that earn the status of Helpful are likely to be seen as helpful by a wide range of people from different points of view, and not only be seen as helpful by people from one viewpoint.”
X will also be allowing half of the top contributors to request notes during the pilot phase, which X said will help the platform evaluate “whether it is beneficial for Community Notes contributors to have both the ability to write notes and request notes.”
According to X, the criteria for requesting a note have intentionally been designed to be simple during the pilot stage, but X expects “these criteria to evolve, with the goal that requests are frequently found valuable to contributors, and not noisy.”
It’s hard to tell from the outside looking in how helpful Community Notes are to X users. The most recent Community Notes survey data that X points to is from 2022 when the platform was still called Twitter and the fact-checking service was still called Birdwatch.
That data showed that “on average,” users were “20–40 percent less likely to agree with the substance of a potentially misleading Tweet than someone who sees the Tweet alone.” And based on Twitter’s “internal data” at that time, the platform also estimated that “people on Twitter who see notes are, on average, 15–35 percent less likely to Like or Retweet a Tweet than someone who sees the Tweet alone.”
X’s chatbot Grok is supposed to be an AI engine crunching the platform’s posts to surface and summarize breaking news, but this week, Grok’s flaws were once again exposed when the chatbot got confused and falsely accused an NBA star of criminal vandalism.
“Klay Thompson Accused in Bizarre Brick-Vandalism Spree,” Grok’s headline read in an AI-powered trending-tab post that has remained on X (formerly Twitter) for days. Beneath the headline, Grok went into even more detail to support its fake reporting:
In a bizarre turn of events, NBA star Klay Thompson has been accused of vandalizing multiple houses with bricks in Sacramento. Authorities are investigating the claims after several individuals reported their houses being damaged, with windows shattered by bricks. Klay Thompson has not yet issued a statement regarding the accusations. The incidents have left the community shaken, but no injuries were reported. The motive behind the alleged vandalism remains unclear.
Grok appears to be confusing a common basketball term, where players are said to be throwing “bricks” when they take an airball shot that doesn’t hit the rim. According to SF Gate, which was one of the first outlets to report the Grok error, Thompson had an “all-time rough shooting” night, hitting none of his shots on what was his emotional last game with the Golden State Warriors before becoming an unrestricted free agent.
In small type under Grok’s report, X includes a disclaimer saying, “Grok is an early feature and can make mistakes. Verify its outputs.”
But instead of verifying Grok’s outputs, it appeared that X users—in the service’s famously joke-y spirit—decided to fuel Grok’s misinformation. Under the post, X users, some NBA fans, commented with fake victim reports, using the same joke format to seemingly convince Grok that “several individuals reported their houses being damaged.” Some of these joking comments were viewed by millions.
First off… I am ok.
My house was vandalized by bricks 🧱
After my hands stopped shaking, I managed to call the Sheriff…They were quick to respond🚨
My window was gone and the police asked if I knew who did it👮♂️
Experts told Ars that it remains unclear if disclaimers like X’s will spare companies from liability should more people decide to sue over fake AI outputs. Defamation claims might depend on proving that platforms “knowingly” publish false statements, which disclaimers suggest they do. Last July, the Federal Trade Commission launched an investigation into OpenAI, demanding that the company address the FTC’s fears of “false, misleading, or disparaging” AI outputs.
Because the FTC doesn’t comment on its investigations, it’s impossible to know if its probe will impact how OpenAI conducts business.
For people suing AI companies, the urgency of protecting against false outputs seems obvious. Last year, the radio host suing OpenAI, Mark Walters, accused the company of “sticking its head in the sand” and “recklessly disregarding whether the statements were false under circumstances when they knew that ChatGPT’s hallucinations were pervasive and severe.”
X just released Grok to all premium users this month, TechCrunch reported, right around the time that X began giving away premium access to the platform’s top users. During that wider rollout, X touted Grok’s new ability to summarize all trending news and topics, perhaps stoking interest in this feature and peaking Grok usage just before Grok spat out the potentially defamatory post about the NBA star.
Thompson has not issued any statements on Grok’s fake reporting.
Grok’s false post about Thompson may be the first widely publicized example of potential defamation from Grok, but it wasn’t the first time that Grok promoted fake news in response to X users joking around on the platform. During the solar eclipse, a Grok-generated headline read, “Sun’s Odd Behavior: Experts Baffled,” Gizmodo reported.
While it’s amusing to some X users to manipulate Grok, the pattern suggests that Grok may also be vulnerable to being manipulated by bad actors into summarizing and spreading more serious misinformation or propaganda. That’s apparently already happening, too. In early April, Grok made up a headline about Iran attacking Israel with heavy missiles, Mashable reported.
Grok, the AI language model created by Elon Musk’s xAI, went into wide release last week, and people have begun spotting glitches. On Friday, security tester Jax Winterbourne tweeted a screenshot of Grok denying a query with the statement, “I’m afraid I cannot fulfill that request, as it goes against OpenAI’s use case policy.” That made ears perk up online since Grok isn’t made by OpenAI—the company responsible for ChatGPT, which Grok is positioned to compete with.
Interestingly, xAI representatives did not deny that this behavior occurs with its AI model. In reply, xAI employee Igor Babuschkin wrote, “The issue here is that the web is full of ChatGPT outputs, so we accidentally picked up some of them when we trained Grok on a large amount of web data. This was a huge surprise to us when we first noticed it. For what it’s worth, the issue is very rare and now that we’re aware of it we’ll make sure that future versions of Grok don’t have this problem. Don’t worry, no OpenAI code was used to make Grok.”
In reply to Babuschkin, Winterbourne wrote, “Thanks for the response. I will say it’s not very rare, and occurs quite frequently when involving code creation. Nonetheless, I’ll let people who specialize in LLM and AI weigh in on this further. I’m merely an observer.”
Enlarge/ A screenshot of Jax Winterbourne’s X post about Grok talking like it’s an OpenAI product.
Jason Winterbourne
However, Babuschkin’s explanation seems unlikely to some experts because large language models typically do not spit out their training data verbatim, which might be expected if Grok picked up some stray mentions of OpenAI policies here or there on the web. Instead, the concept of denying an output based on OpenAI policies would probably need to be trained into it specifically. And there’s a very good reason why this might have happened: Grok was fine-tuned on output data from OpenAI language models.
“I’m a bit suspicious of the claim that Grok picked this up just because the Internet is full of ChatGPT content,” said AI researcher Simon Willison in an interview with Ars Technica. “I’ve seen plenty of open weights models on Hugging Face that exhibit the same behavior—behave as if they were ChatGPT—but inevitably, those have been fine-tuned on datasets that were generated using the OpenAI APIs, or scraped from ChatGPT itself. I think it’s more likely that Grok was instruction-tuned on datasets that included ChatGPT output than it was a complete accident based on web data.”
As large language models (LLMs) from OpenAI have become more capable, it has been increasingly common for some AI projects (especially open source ones) to fine-tune an AI model output using synthetic data—training data generated by other language models. Fine-tuning adjusts the behavior of an AI model toward a specific purpose, such as getting better at coding, after an initial training run. For example, in March, a group of researchers from Stanford University made waves with Alpaca, a version of Meta’s LLaMA 7B model that was fine-tuned for instruction-following using outputs from OpenAI’s GPT-3 model called text-davinci-003.
On the web you can easily find several open source datasets collected by researchers from ChatGPT outputs, and it’s possible that xAI used one of these to fine-tune Grok for some specific goal, such as improving instruction-following ability. The practice is so common that there’s even a WikiHow article titled, “How to Use ChatGPT to Create a Dataset.”
It’s one of the ways AI tools can be used to build more complex AI tools in the future, much like how people began to use microcomputers to design more complex microprocessors than pen-and-paper drafting would allow. However, in the future, xAI might be able to avoid this kind of scenario by more carefully filtering its training data.
Even though borrowing outputs from others might be common in the machine-learning community (despite it usually being against terms of service), the episode particularly fanned the flames of the rivalry between OpenAI and X that extends back to Elon Musk’s criticism of OpenAI in the past. As news spread of Grok possibly borrowing from OpenAI, the official ChatGPT account wrote, “we have a lot in common” and quoted Winterbourne’s X post. As a comeback, Musk wrote, “Well, son, since you scraped all the data from this platform for your training, you ought to know.”
