Elon Musk has become a fat source of news in the last few years, but the tech billionaire has especially been facing one problem after the other more than usual in the last week. Most of them stemmed from his actions, of course, and the latest lawsuit he's facing is one of those instances.
Tesla Investors Sue the CEO
Elon Musk is the CEO of many tech giants, including ones where he serves as the founder. With him claiming to be an advocate of creating AI that benefits humanity, he launched xAI which eventually led to the X Premium exclusive feature, Grok AI.
Entering the AI race is slowly proving to be more trouble than it's worth. Musk just pulled himself out of a day in court after dropping the lawsuit against OpenAI, but now the investors in his own company are suing him for creating xAI.
As reported in The Verge, the tech CEO is being accused of diverting resources and talent from Tesla and directing it to the AI company. This move is considered a breach of fiduciary duty to Tesla. In the lawsuit, Elon Musk's intention to turn Tesla into a robotics and AI company was also mentioned.
It actually helped boost Tesla's popularity and value, making it the top automaker in the market. This just shows why the launch of xAI seems more like a controversial move for the investors of the EV maker. What's worse is that Musk is propping the AI company up using Tesla.
On top of "diverting scarce talent and resources from Tesla to xAI," he is said to have "raised billons of dollars for xAI while touting xAI's access to Tesla's AI-related data." In just the first funding round, the AI company managed to raise $6 billion.
The lawsuit is not only pointing to Musk for his actions but also to the board of the company. The investors expressed that due to the lack of action, they are allowing the tech CEO to "plunder resources from Tesla and divert them to xAI."
One of the biggest diversions of resources recently was Musk ordering thousands of NVIDIA chips from Tesla, and that was not even for xAI as it all went to social media company X. Musk reasoned that Tesla was not capable of accepting the chips due to its factory's incompletion.
Read Also : Elon Musk Faces Lawsuit From Former SpaceX Employees for Alleged Sexual Harassment, Retaliation
Jumping from One Lawsuit to Another
It was just two days ago when news surfaced about Elon Musk dropping the lawsuit against OpenAI. In a typical Elon Musk fashion, the issue between him and the AI startup also has the element of ridiculousness along the lines.
For one, the lawsuit was filed as the tech billionaire accused OpenAI of breaching their contract, wherein they were supposed to develop AI that was for the greater good of humanity. OpenAI denied that there was ever a founding agreement in the first place.
As mentioned in The Guardian, there was no definite reason why the OpenAI co-founder suddenly dropped the lawsuit. It may be because legal experts have found that OpenAI did not, in fact, create an AI that could match human intelligence.
