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Elon Musk Drops Lawsuit Against Sam Altman and OpenAI

By Olivier Acuña | TH3FUS3 Chief Editor

June 12, 2024 05:00 AM

Reading time: 1 minute, 28 seconds

TL;DR Elon Musk has dismissed his lawsuit against OpenAI, leaving the door open for future legal action. The case, which accused OpenAI of breaching contracts and engaging in unfair competition, was set for a hearing on June 12. OpenAI previously stated that Musk had acknowledged the need for a for-profit model.

Musk Drops OpenAI Lawsuit

Through two court filings, Elon Musk has dismissed his lawsuit against OpenAI, its co-founder and CEO Sam Altman, and several other company members.

One filing stated that Musk, as the plaintiff, filed a notice of entry of dismissal and proof of service. The other indicated that the case had been dismissed without prejudice, leaving Musk with the option of refiling it later.

Legal Proceedings Halted

On the same day, CNBC reported that the Superior Court of California of the County of San Francisco had intended to proceed with a hearing on June 12. This hearing would have considered OpenAI and the associated defendants' request to dismiss the lawsuit.

Musk filed the lawsuit on Feb. 29, raising numerous formal charges, including breach of contract and engagement in unfair competition.

Musk alleged that OpenAI now develops AI for profit rather than for the benefit of humanity, has turned to a closed-source model, and has effectively become a subsidiary of its funding source and partner, Microsoft.

OpenAI's Response

In March, OpenAI issued a public statement addressing the lawsuit. The firm claimed that Musk had recognized the need for a for-profit model. OpenAI said it intended to request the court dismiss the case then. This public statement highlighted a significant disagreement between Musk and OpenAI's current direction.

Musk's History with OpenAI

The Tesla founder helped establish OpenAI and remained on the company's board until 2018. His departure from OpenAI and his legal actions against the AI company indicate Musk has issues with Altman and the project.

Competing Interests

Musk currently leads the competing firm xAI, which claims to have pro-humanity goals. In May, this company secured $6 billion in funding, bringing its valuation to $24 billion.

The competition between OpenAI and xAI underscores Musk's continuing influence and interest in artificial intelligence.

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