News
Elon Musk drops lawsuit against OpenAI Elon Musk drops lawsuit against OpenAI

Elon Musk drops lawsuit against OpenAI

Courts dismissed the case without prejudice, leaving Musk an option to refile the case at a later date.

Elon Musk drops lawsuit against OpenAI

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Elon Musk dropped his lawsuit against OpenAI, according to two June 11 court filings.

One filing states that Musk, as the plaintiff, filed a notice of entry of dismissal and proof of service.

The other states that the case has been dismissed without prejudice, leaving Musk with the option of refiling it later.

CNBC reported the same day that the Superior Court of California of the County of San Francisco intended to proceed with a hearing on June 12 before Musk dropped the case.

The hearing would have considered OpenAI and associated defendants’ request to dismiss the lawsuit.

The lawsuit

Musk filed his lawsuit against OpenAI, its co-founder and CEO, Sam Altman, and several other company members on Feb. 29.

Musk raised numerous formal charges, including a breach of contract and engagement in unfair competition. The lawsuit alleged that OpenAI now develops AI for profit rather than for the benefit of humanity, has turned to a closed-source model, and has effectively become a subsidiary of its funding source and partner, Microsoft.

In March, OpenAI issued a public statement claiming that Musk had recognized the need for a for-profit model. The firm said it intended to request the court to dismiss the case at that time.

Musk helped establish OpenAI and remained on the company’s board until 2018.

He currently leads competing firm xAI, which claims to have pro-humanity goals. The company secured $6 billion in funding in May, bringing its valuation to $24 billion.

Mentioned in this article
Posted In: , AI, Featured, Legal