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OpenAI Sued for Fraud Allegations

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Re: OpenAI Sued for Fraud Allegations

#3
The argument in the complaint is that "OpenAI said they would develop software for everyone, but they gave early favoritism to YC companies, so they went back on their promise." This complaint sounds like a high-effort shitpost. The plantiff is filing this pro se.

Just see the full list of defendants:

SAM ALTMAN, an individual; REID HOFFMAN, an individual; GREG BROCKMAN, an individual; ILYA SUTSKEVER, an individual; WOJCIECH ZAREMBA, an individual; JOHN SCHULMAN, an individual; TASHA MCCAULEY, an individual; BRIAN CHESKY, an individual; ADAM D’ANGELO, an individual; ANDREJ KARPATHY, an individual; PAMELA VAGATA, an individual; TREVOR BLACKWELL, an individual; BRAD LIGHTCAP, an individual; CHRIS CLARK, an individual; JESSICA LIVINGSTON, an individual; WILL HURD, an individual; HELEN TONER, an individual; TOMER KAFTAN, an individual; MICROSOFT CORPORATION, a corporation; MATTHEW BROWN COMPANIES, a company; BEDROCK CAPITAL PARTNERS I, L.P., a limited partnership; SEQUOIA CAPITAL U.S. VENTURE 2010 PARTNERS FUND, L.P., a limited partnership; ANDREESSON HOROWITZ ANGEL FUND I, LLC, a limited liability company; TIGER GLOBAL MANAGEMENT, LLC, a limited liability company; KHOSLA VENTURES, LLC, a limited liability company; HOFFMAN KOFMAN FOUNDATION; OPEN RESEARCH LAB, INC., a nonprofit corporation; CASETEXT, INC., a stock corporation; INSTACART, a corporation; ZAPIER, INC., a corporation; and DOES 1 through 10, inclusive,

Re: OpenAI Sued for Fraud Allegations

#7

TL;DR anyone? The filing takes an ungodly amount of time to load and the server might croak under HN pressure.

Multiple claims, all related to 'fraud'. Claims that OpenAI is committing fraud because they are a for-profit disguised as a non-profit, for example.

Re: OpenAI Sued for Fraud Allegations

#8

TL;DR anyone? The filing takes an ungodly amount of time to load and the server might croak under HN pressure.

I'd upload the PDF of the complaint, but it's 55 MB for some reason which will kill the bandwidth of any free-sharing service.

I was looking for a place to upload it as well.

Edit: I would mirror it on one of my sites, but all my sites are pay-per-gb for bandwidth.

Re: OpenAI Sued for Fraud Allegations

#9

TL;DR anyone? The filing takes an ungodly amount of time to load and the server might croak under HN pressure.

Without irony, here's ChatGPT's summary:

This legal complaint alleges that defendants operating a non-profit entity for the benefit of humanity have committed massive fraud on donors, beneficiaries, and the public. The complaint raises concerns about OpenAI's operation, including its dual structure as a non-profit and a for-profit entity, potential insider dealings, and the exclusion of the general public from its benefits. It claims that OpenAI has used deceptive advertising, unfair competition, and fraud to develop its valuable resource for personal gain.

The complaint highlights OpenAI's mission of benefiting humanity and points out that a narrow group of stakeholders have received commercially invaluable early access to its technology. It also argues that OpenAI's for-profit operations might infringe on copyright and fair use laws, as the technology is built on large datasets, much of which is copyrighted. It accuses OpenAI of breaching trust and fiduciary duties, disrupting legal frameworks, and potentially engaging in willful and wanton negligence by increasing existential risks related to AI.

Finally, the complaint alleges that OpenAI might have engaged in banned political activities, specifically suggesting that the technology may have been used to influence the 2020 US presidential election in favor of the Democratic party.

Re: OpenAI Sued for Fraud Allegations

#10
Managed to load the PDF. It seems to be pretty scattershot, basically a collection of every complaint we've all heard about AI. Not a lawyer but key complaints seem to be:

* Despite OpenAI’s mission to ‘benefit all of humanity in a broad and distributed manner,’ early stakeholders that are part of the YC network or bought in are now getting commercially invaluable early access to these systems.

* These GPTs have been trained on large datasets that belong to the commons; text, images, and video freely available across the internet. This free data is typically only used for research purposes under Fair Use law. No compensation has been offered to anyone who created this data. Much of it is copyrighted.

* The blitzscaling of OpenAI is problematic and illegal in a number of ways (Fraud, Breach of Trust and Fiduciary Duties, Legal Disruption, Copyright infringement, etc, etc, etc)

* Demonstrates bias against Trump and not Biden.

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