Elon Musk drops lawsuit against OpenAI CEO Sam Altman


Elon Musk has moved to withdraw his lawsuit against OpenAI and its CEO Sam Altman — which accused the artificial intelligence firm of deviating from its original mission to develop AI to benefit humanity, not for profit.

Musk’s attorneys requested to drop the breach of contract lawsuit without prejudice, according to court filings in the San Francisco Superior Court on June 11.

The dismissal without prejudice means the case isn’t dismissed forever and thus allows Musk to file again in the future.

It came one day before a federal judge was set to decide whether to dismiss the case or allow it to proceed to the next stage, earlier court filings show.

Musk didn’t provide a statement on his decision to drop the lawsuit.

Details of Musk’s filing to dismiss the lawsuit without prejudice against OpenAI and Altman. Source: Superior Court of California

Musk sued OpenAI and Altman on Feb. 29, 2024 for breach of contract, claiming the ChatGPT-creator firm deviated from its original mission to develop its large language models for the “benefit of humanity, not profit.”

His complaints related specifically to OpenAI’s collaborations with tech giant Microsoft to build artificial general intelligence (AGI) tech and choosing to launch of ChatGPT-4 in a closed-sourced manner.

At the time, Musk urged OpenAI to return to its open-source principles and requested an injunction to prevent the for-profit exploitation of AGI tech.

Musk also filed fiduciary duty violation and unfair business practices complaints against OpenAI.

Related: Elon Musk sets record straight on Nvidia AI chip shipments

The billionaire’s latest issue with OpenAI involves a partnership with Apple, which will see ChatGPT integrated into iPhone, iPad and Mac operating systems.

Musk claims Apple’s decision is an “unacceptable security violation” against Apple users by entrusting privacy and security to a third-party like OpenAI.

However, Apple claims user IP addresses would remain obscured and that OpenAI would not store data requests.

“It’s aware of your personal data without collecting your personal data,” Apple stressed when talking about the “privacy promise” of Apple Intelligence.

Musk helped launch AI chatbot Grok last November with aims to compete with the likes of ChatGPT.

The firm behind Grok, xAI, secured $6 billion in funding from the likes of Valor Equity Partners, Andreessen Horowitz, Sequoia Capital and Fidelity Management & Research Company in late May.

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