Nonprofit Encode files amicus brief to support Elon Musk’s fight against OpenAI

Nonprofit Encode has requested permission to file an amicus brief to support Elon Musk in his dispute with OpenAI. The billionaire CEO of Tesla has been in a long-standing battle with OpenAI, accusing the firm of going against its promises to investors. The SpaceX boss filed an injunction asking the court to block OpenAI’s transition into a for-profit organization.

The brief was submitted by Encode’s legal counsel at the United States District Court for the Northern District of California.

In the brief, the organization asserts that granting OpenAI’s for-profit status will undermine the company’s vision. This means that its technologies will no longer be developed and deployed in a way that will be safe and beneficial to the public.

Encode joins the fight against OpenAI’s transition 

In its brief, Encode mentioned that OpenAI’s vision statement needs to be taken seriously. “OpenAI and its CEO, Sam Altman, claim to be developing society-transforming technology, and those claims should be taken seriously,” the brief read.

The brief also said that it is in the best interest of the general public to have a public charity control the firm’s actions. Encode believes that if the public charity controls OpenAI’s actions, it can prioritize public benefits and not just focus on generating returns for its privileged investors.

Another portion of the brief mentioned that the move should be blocked because the general public already has vested interests in the technology.

Encode’s lawyers also ripped into OpenAI’s move to cede control to a PBC. “The move would convert an organization bound by law to ensure the safety of advanced AI into one bound by law to ‘balance’ its consideration of any public benefit against ‘the pecuniary interests of [its] stockholders,” it said.

The legal counsels noted in the brief, the company’s ethos of not competing with safety-conscious projects that are close to building AGI before it does. Meanwhile, if it moves to a for-profit organization, it would have to discard such initiatives. It also said that if the time comes for the non-profit arm to push for safety by returning investor’s equity, it would be blocked from doing so after the restructuring.

Encode’s brief also said that the firm’s humanity-first responsibility to the public would evaporate if the move is approved. It claims the safety-focused approach would be breached, a move that could harm public interest. The non-profit arm could also be forced to relinquish control at any point in time with no commitment made towards public safety.

OpenAI’s new model and its legal battle with Elon Musk 

OpenAI was initially founded as a non-profit organization in 2015, with the company just a research lab. Along the line, it needed capital to carry out some of its projects, paving the way for its current structure. The company has raised funds from several venture capitalists and corporations, including its biggest investor to date, Microsoft.

Presently, the company has a hybrid structure, a profit arm that is controlled by its non-profit arm which provides a capped profit for investors and employees. The company has also hinted in a blog about its intention to transition its for-profit arm into a Delaware Public Benefit Corporation (PBC). With this, its non-profit arm will continue to exist but will surrender control of shares at the PBC.

Elon Musk, one of the co-founders and an early contributor filed a lawsuit requesting the court to block the transition. Musk accused the firm of abandoning its original vision, denying the public from having access to its research. OpenAI hit back at Musk, calling his accusations baseless. The firm claimed he was the first to suggest the move to a for-profit model.

Encode is not the first organization to back Elon Musk and oppose OpenAI’s transition. Meta Platforms sent a letter to California general attorney Rob Bonta arguing against the shift. According to the Facebook parent company and fellow rival in the AI scene, the move will have a shattering effect on Silicon Valley. The company also registered its faith in fellow rival Elon Musk to lead the case and represent the general public.

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