Elon Musk withdraws his lawsuit against OpenAI and CEO Sam Altman, accusing the AI firm of straying from its mission. The dismissal allows Musk to refile it in the future.

Elon Musk has withdrawn his lawsuit against OpenAI and its CEO, Sam Altman, which accused the AI firm of deviating from its original mission to develop AI for the benefit of humanity rather than for profit. Musk's attorneys requested to drop the breach of contract lawsuit without prejudice, allowing the possibility of refiling in the future, according to court filings in the San Francisco Superior Court on June 11.


This move came one day before a federal judge was set to decide whether to dismiss the case or allow it to proceed to the next stage. Musk has not provided a statement regarding his decision to withdraw the lawsuit.


Musk initially sued OpenAI and Altman on February 29, 2024, for breach of contract, claiming the company strayed from its mission by collaborating with Microsoft to build artificial general intelligence (AGI) technology and by launching ChatGPT-4 in a closed-source manner. He urged OpenAI to return to its open-source principles and sought an injunction to prevent the for-profit exploitation of AGI technology. Additionally, Musk filed fiduciary duty violations and unfair business practices complaints against OpenAI.


Recently, Musk's concerns extended to a partnership between OpenAI and Apple, which involves integrating ChatGPT into iPhone, iPad, and Mac operating systems. Musk described this partnership as an "unacceptable security violation" against Apple users, claiming that it compromises user privacy and security by relying on a third party like OpenAI. However, Apple assured that user IP addresses would remain obscured and that OpenAI would not store data requests, emphasizing their "privacy promise."


In contrast to his disputes with OpenAI, Musk launched AI chatbot Grok last November through his firm xAI, aiming to compete with ChatGPT. xAI recently secured $6 billion in funding from prominent investors such as Valor Equity Partners, Andreessen Horowitz, Sequoia Capital, and Fidelity Management & Research Company in late May.


The withdrawal of Musk's lawsuit marks a significant moment in the ongoing tensions between him and OpenAI, particularly regarding the direction and principles guiding the development and use of AI technology. As the landscape of AI continues to evolve, the interplay between open-source ideals and commercial interests remains a critical issue for industry leaders and stakeholders.


(BRAYDEN LINDREA, COINTELEGRAPH, 2024)