Elon Musk decided to retract his lawsuit against the company OpenAI and its founders Sam Altman and Greg Brockman in the state of California. Musk filed a request to dismiss the lawsuit one day after criticizing OpenAI and its partnership with Apple.
The case was dismissed without prejudicing the rights of the party to refile the lawsuit, according to the court document. In February, Musk filed a lawsuit against OpenAI, Altman, and Brockman, the CEO and current president of OpenAI respectively, on charges of contract breach and failure to fulfill fiduciary duties.
A hearing was scheduled to take place in San Francisco on Wednesday, where the judge would consider whether to dismiss the case as requested by the defendants. Experts confirmed in March that the case was legally flawed due to the absence of a formal contract signed by all parties involved.
It is worth mentioning that Elon Musk is converting thousands of artificial intelligence chips into X and xAI instead of Tesla.
Instead, Musk alleged that the initial OpenAI team sought to develop artificial intelligence for the benefit of humanity, but the project shifted into an entity aiming for profit and being heavily influenced by the major stakeholder Microsoft.
The writer Musk used a 35-page memorandum, along with attachments, which she submitted in March to remind people of the role she played in founding a company that is now one of the top emerging companies globally. OpenAI topped the CNBC Disruptor 50 list for 2023 thanks to the popularity of the chatbot ChatGPT and its wide deployment.
Kevin O’Brien, a partner at Ford O’Brien Landy LLP and former US Attorney General, stated during that period:
“Certainly, this is an excellent announcement for Elon Musk. But I don’t know if the legal side is sound or not.”
Elon Musk’s competing artificial intelligence company xAI was launched last year, which recently announced a $6 billion funding in a Series B round involving investors like Andreessen Horowitz, Sequoia Capital, and Fidelity Management & Research.
