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Elon Musk drops suit against OpenAI and Sam Altman

Jun 11, 2024 - cnbc.com
Elon Musk has withdrawn his lawsuit against OpenAI and its co-founders, Sam Altman and Greg Brockman, in California state court. The decision came a day after Musk publicly criticized OpenAI's new partnership with Apple. The lawsuit, which was dismissed without prejudice, was filed by Musk in February, accusing OpenAI, Altman, and Brockman of breach of contract and fiduciary duty. Musk claimed that OpenAI, initially intended to develop artificial general intelligence for the benefit of humanity, has become a for-profit entity largely controlled by Microsoft.

In other news, Musk's own AI startup and OpenAI competitor, xAI, recently announced a $6 billion Series B funding round, with investors including Andreessen Horowitz, Sequoia Capital, and Fidelity Management & Research Company. X.AI aims to "understand the true nature of the universe" and last year released a chatbot called Grok, which is said to have real-time knowledge of the internet.

Key takeaways:

  • Elon Musk has withdrawn his lawsuit against OpenAI and its co-founders, Sam Altman and Greg Brockman, in California state court.
  • The lawsuit was filed over allegations of breach of contract and fiduciary duty, with Musk claiming that OpenAI had deviated from its original mission to develop artificial general intelligence for the benefit of humanity.
  • Musk has his own AI startup, xAI, which recently announced a $6 billion Series B funding round. The company has released a chatbot called Grok.
  • The lawsuit was dismissed without prejudice, meaning it can be filed again in the future.
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