A court filing revealed dismissal of the February lawsuit for breach of contract and fiduciary duty, before the San Francisco hearing.
In a bizarre turn of events, Tech Mogul Elon Musk has withdrawn his lawsuit against artificial intelligence company OpenAI and its CEO Sam Altman. The news comes barely hours after he publicly criticized Apple for incorporating OpenAI’s ChatGPT in their devices.
Musk had filed a suit against OpenAI- a company he co-founded and its CEO Altman, in a California State Court on charges of allegedly breaching the contract by diverging away from the original intent of founding OpenAI-which was to benefit the humanity. On June 11, Musk took to X, formerly Twitter, and criticized Apple Inc. for incorporating OpenAI in their software, calling it a breach of data privacy.
On the same day, a court filing revealed that the lawsuit, filed in February for breach of contract and fiduciary duty, was dismissed without prejudice before the scheduled hearing in San Francisco, where the judge would have considered the defendant’s request for dismissal.
Elon Musk drops lawsuit against OpenAI CEO Sam Altman
Source: Superior Court of California
Legal experts had earlier noted that the case’s foundation was questionable due to the absence of a formal written agreement signed by all parties. Musk’s complaint alleged that OpenAI, initially aimed at developing artificial general intelligence (AGI) for humanity’s benefit, had shifted to a for-profit entity mainly controlled by principal shareholder Microsoft.
Musk’s legal action highlighted his pivotal role in OpenAI’s early days, emphasizing its evolution into a leading startup, notably boosted by ChatGPT’s popularity. Kevin O’Brien, a partner at Ford O’Brien Landy LLP, remarked that while it showcased Musk’s influence, the legal aspect was uncertain.
Elon Musk’s venture into AI includes ‘xAI’, a competitor to OpenAI, which recently secured a $6 billion Series B funding round from investors like Andreessen Horowitz and Sequoia Capital.
As per Musk, X.AI aims to better understand the universe, with its chatbot Grok inspired by “The Hitchhiker’s Guide to the Galaxy, ” boasting real-time internet knowledge.
The withdrawal of Musk’s lawsuit signifies a shift in dynamics within the AI landscape, showcasing the complexities of technology, business, and legal challenges in this rapidly evolving field.