Elon Musk, the CEO of Tesla and SpaceX, recently dropped his lawsuit against OpenAI and its co-founders Sam Altman and Greg Brockman. The lawsuit was filed in February 2024, with Musk accusing OpenAI of betraying their founding mission to develop artificial intelligence for the benefit of humanity by transforming into a for-profit entity.
However, on March 14, 2024, Musk's lawyers withdrew the lawsuit without providing any reason. The dismissal came just one day after Musk publicly criticized OpenAI and its new partnership with Apple.
Musk had initially filed the lawsuit in California state court for breach of contract and fiduciary duty. He claimed that OpenAI, which is now largely controlled by principal shareholder Microsoft, had set out to develop artificial general intelligence for the benefit of humanity but had transformed into a profit-driven entity.
OpenAI described Musk's complaint as 'contrived,' arguing they had no founding agreement or contract with Musk. The company also accused Musk of seeking to capitalize on its success after seeing the remarkable technological advances it had achieved.
Musk helped co-found OpenAI in 2015 but exited the company three years later. In 2023, he launched his own AI startup, xAI. Last month, xAI announced that it had raised $6bn from backers including venture capital firm Andreessen Horowitz and Saudi Arabian investor Prince Alwaleed bin Talal.
OpenAI's response to Musk's lawsuit highlighted the fact that Musk had used much of the complaint to remind the world of his position in the creation of a company that has since become one of the hottest startups on the planet. The case was built on a questionable legal foundation, as there was no formal written agreement signed by all parties involved.
Despite dropping the lawsuit, Musk continues to criticize OpenAI and its partnership with Apple. He has accused Apple of integrating OpenAI at the operating system level, which he believes is an unacceptable security violation. Musk also announced that all Apple products will be banned from his companies: Tesla, SpaceX, The Boring Company, and any other company he owns.