Elon Musk Drops His Breach of Contract Lawsuit Against OpenAI

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Key Takeaways

  • Elon Musk has dropped his lawsuit against OpenAI.
  • A hearing was scheduled for today in San Francisco to decide whether the case should be dismissed.
  • This comes after Musk tweeted criticisms of a new partnership between Apple and OpenAI on Monday.

Elon Musk has withdrawn his lawsuit against OpenAI and the company’s co-founders, Sam Altman and Greg Brockman.

According to CNBC, the case was dismissed without prejudice the day before a hearing scheduled in San Francisco, during which the judge would decide if the case should be dropped. The dismissal without prejudice means Musk could refile at any time.

Musk filed the lawsuit in February against OpenAI, its current CEO, Sam Altman, and company President, Greg Brockman, for breach of contract and fiduciary duty.

Musk’s 35-page complaint alleged that OpenAI had abandoned its plans to develop artificial general intelligence (AGI) for the good of humanity and had become a for-profit entity controlled by Microsoft.

Musk vs. OpenAI: Timeline

Earlier this year, experts questioned the legal foundation of the case because all parties signed no formal written agreement.

This move came just one day after Musk publicly criticized a new partnership between Apple and OpenAI in a series of tweets.

Musk co-founded OpenAI in 2015 but left over disagreements over the company’s control. In a blog post, OpenAI said although Musk agreed that a for-profit structure was required to move the company forward, he wanted full control or for the company to merge with Tesla.

Musk launched his own OpenAI competitor, xAI, last year, releasing its Grok chatbot, modeled after the Hitchhiker’s Guide to the Galaxy. Last month, the startup announced a $6 billion series B funding round with investors including Sequoia Capital.