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Elon Musk drops lawsuit against ChatGPT-maker OpenAI before scheduled hearing

PIX Now afternoon edition 6-12-2024
PIX Now afternoon edition 6-12-2024 09:18

Without any explanation, Elon Musk on Tuesday abruptly dropped his lawsuit against OpenAI, just a day before a scheduled hearing on the case.

Musk in February sued the San Francisco artificial intelligence company and its CEO Sam Altman over what he called a betrayal of the ChatGPT maker's founding aims of benefiting humanity rather than pursuing profits.

In the lawsuit filed in February at San Francisco Superior Court, billionaire Musk said that when he bankrolled OpenAI's creation, he secured an agreement with Altman and Greg Brockman, the president, to keep the AI company as a nonprofit that would develop technology for the benefit of the public and keep its code open instead of walling it off for private gain.

However, by embracing a close relationship with Microsoft, OpenAI and its top executives set that pact "aflame" and are "perverting" the company's mission, Musk alleged in the lawsuit.

Most legal experts said Musk's claims — centered around allegations of breach of contract, breach of fiduciary duty and unfair business practices — were unlikely to succeed in court. Musk's lawyer filed a notice Tuesday seeking to dismiss the entire case. No explanation was given for why it was being dropped.

Neither Musk nor anyone representing him in the case showed up at a status hearing Wednesday.

Musk's lawyers and OpenAI didn't immediately respond to requests for comment. OpenAI vowed in March to get the claim thrown out and released emails from Musk showing his earlier support for making it a for-profit company.

Earlier this week, Musk was critical of Apple's announcement that it would be integrating OpenAI into its tech. Musk warned that he was considering a ban on Apple devices for employees at his various companies including Tesla, SpaceX and X.

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