Elon Musk withdraws lawsuit against OpenAI, CEO Sam Altman

June 12, 2024
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Elon Musk withdraws lawsuit against OpenAI, CEO Sam Altman

Photo credit: Getty Images

Billionaire Elon Musk has moved to dismiss his lawsuit against OpenAI and its chief executive, Sam Altman, which accuses the artificial intelligence company of casting aside its founding mission and becoming profit-focused.

According to a June 11 filing in the San Francisco Superior Court, attorneys for Musk asked the California state court to dismiss the breach of contract lawsuit filed on Feb. 29, without giving a reason behind the withdrawal.

Musk’s decision to drop the case allows him to potentially refile the lawsuit in the future.

The dismissal occurred just a day before a federal judge was scheduled to determine the case’s fate, according to court records. A Superior Court judge there was also reportedly prepared to hear OpenAI’s bid to dismiss the lawsuit at a hearing scheduled for June 12.

Read more: Cathie Wood’s Ark Investment buys stake in Elon Musk’s AI startup

Musk sued OpenAI on Feb. 29, alleging the company breached an agreement by becoming overly profit-focused. OpenAI responded by releasing a series of emails that appear to show Musk’s prior support for the organization’s shift to a for-profit model.

In May, Musk’s AI startup, xAI, raised $6 billion in a series B funding round, participated by several investors, including Andreessen Horowitz (a16z), Sequoia Capital, Valor Equity Partners, Vy Capital, and Fidelity Management & Research Company, and Saudi billionaire Prince Alwaleed bin Talal and his investment company Kingdom Holding.

While it remains to be seen how Musk will go forward about his issues with OpenAI, the billionaire’s latest beef involving the AI company relates to Apple’s new initiative, which will see ChatGPT getting integrated into iPhone, iPad, and Mac operating systems.

The Tesla and SpaceX CEO threatened to ban Apple devices at his companies should Apple move forward with the integration.

Read more: Wa’ed Ventures invests for the 2nd time in AI startup Tenderd

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