After accusing OpenAI for contract breach, Elon Musk withdrew his lawsuit against OpenAI and its CEO, Sam Altman. News comes in that Musk was accusing the company of a breach of contract and allegedly abandoning its mission of creating AI technology to benefit humanity.
Early reports by CNBC suggested that the case was dismissed without prejudice. This means that Musk can file the lawsuit again.
Musk dismisses lawsuit!
Reportedly, in February, Musk had filed a lawsuit against OpenAI, Altman and Brockman — the current CEO and president of OpenAI, respectively — for breach of contract and fiduciary duty.
It looks like Musk’s decision to withdraw the lawsuit comes just one day before a scheduled hearing where the judge would’ve reviewed OpenAI’s request to dismiss the case. Musk had filed the lawsuit in a California state court in February (case number CGC24612746).
The announcement also comes just a day after Musk announced that he would ban Apple devices at his companies. Musk said “If the company integrates OpenAI’s technology into the iPhone and Mac at the OS level, among other bizarre threats, he would ban Apple devices.”
Early history of complaints
Musk had previously alleged that OpenAI breached an agreement with Musk and other founding members. As per the deal, all of the members of the agreement committed to make OpenAI a non-profit and keep its technology open source, which Musk explained as ‘broken.’
Musk had also alleged that the early OpenAI team had set out to develop artificial general intelligence, or AGI, ‘for the benefit of humanity.’ Contrary to this The Verge’s Nilay Patel, explained that “ The complaint makes reference to a “Founding Agreement,” but no such Founding Agreement is attached as an exhibit, and the breach of contract claim admits that the “Founding Agreement” is basically a vibe everyone caught in some emails.”
However, according to Musk the project seems to have transformed into a for-profit entity that’s largely controlled by principal shareholder Microsoft, as reported by CNBC.
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