Elon Musk Backs Down: Abruptly Ends Lawsuit Against OpenAI One Day Before Hearing!

  • Editor
  • June 13, 2024

Elon Musk has withdrawn his lawsuit against OpenAI and its CEO, Sam Altman, which accused the company of breaching its founding principles.

Filed in February 2024, the lawsuit alleged that OpenAI, which Musk co-founded in 2015, had deviated from its original mission of developing AI for the public good by pursuing profit-driven objectives, especially after partnering with Microsoft.

Musk’s legal action sought a jury trial and demanded that OpenAI, Altman, and co-founder Greg Brockman return any profits made, arguing that they had betrayed the company’s nonprofit origins.

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OpenAI quickly dismissed Musk’s claims as “incoherent” and “frivolous” and moved to have the case dismissed.

The company released a blog post with emails from Musk that suggested he supported the need for significant funding to achieve OpenAI’s ambitious goals. These emails contradicted his lawsuit’s assertion that OpenAI was improperly focusing on profit.

Musk’s lawyers did not provide a reason for dropping the lawsuit, which came just a day before a scheduled court hearing on OpenAI’s motion to dismiss the case.

This decision also followed a series of critical posts by Musk on his social media platform, X, where he lambasted OpenAI’s data handling practices. This criticism coincided with Apple’s announcement of a partnership with OpenAI to integrate ChatGPT with Siri.

The lawsuit highlighted a deeper conflict over the management and direction of OpenAI. Musk accused the company of prioritizing the development of powerful “artificial general intelligence” to maximize profits.

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OpenAI, however, suggested that Musk’s lawsuit stemmed from professional jealousy after his departure from the company in 2018, following an unsuccessful attempt to persuade his co-founders to let Tesla acquire OpenAI.

Despite Musk’s accusations, OpenAI faced its own internal challenges. Last year, a leadership crisis led to Altman’s temporary removal due to concerns about AI risks. Microsoft, a major investor, played a crucial role in reinstating Altman.

Several high-profile safety leaders also left OpenAI, criticizing its focus on rapid product development over safety. In response, OpenAI established a new committee to oversee safety and security recommendations.

The withdrawal of the lawsuit, dismissed without prejudice, allows Musk the option to re-file it in the future. The case’s dismissal, just before key court proceedings, suggests strategic considerations, possibly due to the difficulty of proving claims without a formal founding agreement.

byu/jeetah from discussion

The lawsuit underscored ongoing tensions within the AI industry about balancing innovation, ethical considerations, and profitability.

Musk has since launched his own AI company, xAI, which has secured $6 billion in funding and developed the Grok AI chatbot, available through an X Premium subscription.

Emails recently surfaced suggesting that Musk redirected thousands of Nvidia H100 AI chips intended for Tesla to xAI, further highlighting his continued involvement and influence in the AI sector.

For more news and insights, visit AI News on our website.

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Dave Andre


Digital marketing enthusiast by day, nature wanderer by dusk. Dave Andre blends two decades of AI and SaaS expertise into impactful strategies for SMEs. His weekends? Lost in books on tech trends and rejuvenating on scenic trails.

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