Topline<\/p>\n
OpenAI\u2019s much-heralded partnership with Apple has deteriorated and could soon result in OpenAI taking legal action, Bloomberg reported<\/a> Thursday, the latest in a string of turmoil for the AI giant over the past few weeks\u2014which could culminate in a court ruling forcing it to completely overhaul its business model.<\/p>\n OpenAI CEO Sam Altman arrives to court on April 30 in Oakland, California. <\/p>\n Getty ImagesTimeline<\/p>\n May 14Bloomberg reported<\/a> OpenAI\u2019s relationship with Apple has \u201cbecome strained\u201d and OpenAI is considering possible legal action, after Apple allegedly did not do enough to integrate ChatGPT into its software as the partnership between the two companies required.<\/p>\n May 12OpenAI CEO Sam Altman testified<\/a> in Elon Musk\u2019s ongoing trial against OpenAI, during which Musk\u2019s attorney repeatedly questioned<\/a> whether Altman was trustworthy in an effort to damage the CEO\u2019s credibility with the jury.<\/p>\n May 12OpenAI was sued<\/a> in federal court after ChatGPT allegedly gave a man advice that led to him fatally overdosing on drugs, one of more than two dozen wrongful death lawsuits that have been filed<\/a> in recent months against OpenAI and its competitors.<\/p>\n May 11OpenAI was sued<\/a> for allegedly playing a role in last year\u2019s mass shooting at Florida State University, with the widow of a man killed in the shooting alleging ChatGPT gave advice to the shooter and the chatbot should have had better \u201cguardrails\u201d in place to prevent such harm.<\/p>\n May 8House Oversight Committee chair Rep. James Comer, R-Ky., sent a letter<\/a> to Altman about his personal investments and what OpenAI was doing to prevent conflicts of interest, investigating the matter as news reports suggest Altman has pushed OpenAI to invest in companies he has a personal stake in.<\/p>\n State attorneys general also recently sent a letter to Securities and Exchange Commission chair Paul Atkins asking him to investigate Altman\u2019s personal investments ahead of OpenAI\u2019s planned IPO, the Wall Street Journal first reported<\/a>.<\/p>\n April 28The Journal reported<\/a> OpenAI missed key revenue and user growth targets as it loses market share in the AI space, raising questions about whether it can pay for more computing power without significant revenue growth.<\/p>\n April 27Jury selection began in Musk\u2019s trial against Altman and OpenAI, in which Musk alleges Altman and other OpenAI co-founders intentionally deceived Musk by getting him to invest in OpenAI as a nonprofit, but then changing OpenAI to instead be a for-profit venture.<\/p>\n April 26OpenAI\u2019s video creation service Sora officially ceased operations after OpenAI announced<\/a> in March it would close, which also ended a $1 billion deal OpenAI had previously struck with Disney around use of the media giant\u2019s characters on the platform.<\/p>\n The move to shutter Sora, which OpenAI initially debuted with much fanfare in September, came as the Journal reported<\/a> OpenAI was shifting its strategy to focus more on its core coding and enterprise operations, rather than \u201cside quests\u201d like Sora.<\/p>\n What To Watch For<\/p>\n The next few weeks and months could be fraught with more challenges for OpenAI, which reportedly<\/a> intends to go public as soon as the last quarter of 2026. Jury deliberations are set to begin next week in Musk\u2019s lawsuit against Altman and OpenAI, though the judge in the case will make the final determination based on the jury\u2019s advice. The litigation carries high stakes for OpenAI, which could be forced to revert back to its previous structure as a nonprofit if the court sides with Musk. A win for Musk could also force Altman and OpenAI president Greg Brockman off the company\u2019s board. It also remains to be seen what will happen in Congress\u2019 investigation of Altman, whose personal investments have become a source of scrutiny because he\u2019s acquired stakes in many companies that do business directly with OpenAI. Comer asked Altman to respond to his questions by May 22, and Altman said in his trial testimony that he would respond to the lawmaker\u2019s inquiry. It\u2019s unclear whether the SEC will investigate Altman\u2019s investments as attorneys general have requested, and if that could lead to any consequences for Altman or OpenAI.<\/p>\n What Has Openai Said?<\/p>\n OpenAI has denied Musk\u2019s allegations in the ongoing trial, instead arguing Musk had actually been in favor of OpenAI pursuing a for-profit model when he was first involved with the company and accusing the Tesla CEO of \u201csour grapes\u201d and retaliating against OpenAI because it succeeded without him. The company has also denied liability in the wrongful death lawsuits that have been brought against it, with spokesperson Drew Pusateri saying about the overdose lawsuit filed May 12, \u201cChatGPT is not a substitute for medical or mental health care, and we have continued to strengthen how it responds in sensitive and acute situations with input from mental health \u200bexperts.\u201d Pusateri also responded to the Florida lawsuit by denying OpenAI did anything wrong, saying in a statement, \u201cChatGPT provided factual responses to questions with information that could be found broadly across public sources on the internet, and it did not encourage or promote illegal or harmful activity.\u201d Altman has defended his outside investments that were raised in the congressional investigation, saying in his testimony Tuesday that he recuses from all matters that could pose a conflict. OpenAI also pushed back on The Journal\u2019s reporting about it missing revenue targets that could impact its future compute contracts, with Altman and chief financial officer Sarah Friar saying in a statement any suggestion the company is pulling back on new compute resources is \u201cridiculous.\u201d OpenAI \u201cis firing on all cylinders and the mood internally is incredibly positive,\u201d Altman and Friar said in a statement published by The Journal.<\/p>\n Surprising Fact<\/p>\n Any missed revenue or fluctuations in OpenAI\u2019s business won\u2019t have a direct impact on Altman\u2019s finances, as the OpenAI CEO does not have any direct equity in his company. Altman\u2019s wealth\u2014which Forbes values at more than<\/a> $3.5 billion<\/a>\u2014is instead entirely based on his outside investments, underscoring why those investments are now raising concern on Capitol Hill.<\/p>\n Further ReadingForbesSam Altman Defends Himself From Conflict Of Interest Claims At OpenAI Trial: \u2018Always Been Recused\u2019By Alison Durkee<\/a>ForbesSam Altman Explains Our AI FutureBy Richard Nieva<\/a>ForbesSam Altman\u2019s Net Worth Tops $4 Billion From Newly Revealed Investments During Musk-Altman TrialBy Alicia Park<\/a>ForbesIlya Sutskever Testifies He Holds $7 Billion OpenAI Stake\u2014Second New Billionaire Revealed In Musk-Altman TrialBy Alicia Park<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Topline OpenAI\u2019s much-heralded partnership with Apple has deteriorated and could soon result in OpenAI taking legal action, Bloomberg…\n","protected":false},"author":2,"featured_media":39212,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[580,140,9521,24132,16087,157,24131,22726,370,8406],"class_list":["post-39211","post","type-post","status-publish","format-standard","has-post-thumbnail","category-openai","tag-chatgpt","tag-elon-musk","tag-florida-state-university-shooting","tag-lawsuits-against-openai","tag-musk-v-altman-trial","tag-openai","tag-openai-apple-deal","tag-openai-controversy","tag-sam-altman","tag-sora"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/39211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=39211"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/39211\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/39212"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=39211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=39211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=39211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}