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  • Writer's pictureSarah Ruivivar

Elon Musk Drops OpenAI Lawsuit

📸 ModelProp / Midjourney

Elon Musk has decided to drop his lawsuit against OpenAI and its co-founders, Sam Altman and Greg Brockman.


The case, which was filed in California state court, was set for a hearing in San Francisco. The judge was expected to consider the defendants' request to dismiss the case.


The lawsuit, originally filed in February, accused OpenAI of breach of contract and fiduciary duty. Musk alleged that the initial mission of OpenAI was to develop artificial general intelligence (AGI) "for the benefit of humanity." However, he claimed that the project had morphed into a for-profit entity controlled by Microsoft.


Experts had previously noted that the legal foundation of Musk’s case was shaky. The contract at the heart of the lawsuit was not a formal written agreement signed by all parties involved. Kevin O’Brien, a partner at Ford O’Brien Landy LLP, mentioned, "It’s certainly a good advertisement for the benefit of Elon Musk. I’m not sure about the legal part though."


 

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Musk’s decision to withdraw the lawsuit came just a day after he publicly criticised OpenAI's new partnership with Apple. The case was dismissed without prejudice, meaning Musk can refile it in the future if he chooses.


Interestingly, Musk has been busy with his own AI ventures. Last year, he launched xAI, an OpenAI competitor. xAI recently announced a $6 billion Series B funding round with investors like Andreessen Horowitz and Sequoia Capital. The company aims to "understand the true nature of the universe" and has already released a chatbot named Grok, inspired by "The Hitchhiker’s Guide to the Galaxy."


So, while Musk may have dropped this legal battle, it’s clear he’s not stepping away from the AI arena anytime soon.



 

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