Tesla Inc. TSLA and SpaceX CEO Elon Musk, on Tuesday, withdrew his lawsuit against OpenAI and its co-founders, Sam Altman and Greg Brockman. His decision came a day after he went on a tirade and berated Apple Inc. AAPL for partnering with ChatGPT-parent.
What Happened: Musk filed a lawsuit in February against OpenAI, Altman, and Brockman for breach of contract and fiduciary duty. The lawsuit was dismissed without prejudice, reported CNBC, citing a court filing.
A hearing was set for Wednesday in San Francisco, where the judge was to decide whether to dismiss the case as the defendants had requested.
According to experts, the lawsuit was based on a contract that was not a formal written agreement signed by all parties involved.
Musk had alleged that the early OpenAI team initially set out to develop artificial general intelligence (AGI) “for the benefit of humanity.” However, it has evolved into a for-profit entity largely controlled by principal shareholder Microsoft Corporation MSFT.
Previously, Altman addressed these allegations and said that OpenAI began as a research lab with no intentions of commercializing its work. But, as the technology progressed, the company had to adjust and make decisions that might appear questionable in retrospect.
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Why It Matters: Musk’s lawsuit withdrawal comes a day after he publicly criticized OpenAI and its new partnership with Apple. He has threatened to ban Apple devices from his companies including Tesla and SpaceX if the tech giant integrates OpenAI technology at the OS level.
“If Apple integrates OpenAI at the OS level, then Apple devices will be banned at my companies. That is an unacceptable security violation,” he said.
Musk was one of the co-founders of OpenAI, but he left the company in 2018. It was reported earlier that he wanted the startup to be acquired by Tesla, but the other co-founders including Altman disagreed.
In 2023, Musk launched his AI startup and OpenAI competitor, xAI. In November, xAI launched its first product, Grok. Last month, xAI announced it had secured $6 billion in Series B funding, with investors such as Andreessen Horowitz, Sequoia Capital, and Fidelity Management & Research Company.
Despite the legal dispute, Musk has been making significant strides in the AI industry. His AI startup, xAI, recently announced a $6 billion Series B funding round, positioning it as one of the most valuable AI startups in the world, as reported by Benzinga.
Previously, it was also reported that xAI is planning to construct a supercomputer in Memphis, Tennessee, to bolster its AI development efforts.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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