Don't think it's about privacy. It's about that he wants money from openai because he tried to buy them out or something, or was involved a long time ago, or tried to get involved, or whatever, but he thinks he should have a big payday from it now that its stock is up.
That left. And far as I remember it wasn't a situation of being pushed out, he left on his own. Probably because he disagreed with everyone else about something.
Ironically with all the hubbub about Sam Altman, it seems like he somehow might have not been the clear worst of the bunch. Somehow.
Not going to happen. Elmo is too self-centered to develop a phone in the spirit of FOSS. And then there are reputational issues to consider; many would be opposed to working for the benefit of Elmo.