Elon Musk Withdraws Lawsuit Against OpenAI and CEO

June 12, 2024

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Elon Musk has decided to withdraw his lawsuit against OpenAI and its CEO, Sam Altman. The lawsuit, filed earlier this year, accused the artificial intelligence firm of straying from its founding mission of developing AI for the benefit of humanity rather than for profit.

According to court filings in the San Francisco Superior Court on June 11, Musk’s attorneys requested the dismissal of the breach of contract lawsuit without prejudice. This means that the case is not permanently closed, allowing Musk the option to refile in the future.

Elon Musk Provides No Explanation

The withdrawal came just one day before a federal judge was set to rule on whether the case would proceed to the next stage. Elon Musk has not provided any public statement explaining his decision to drop the lawsuit.

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The lawsuit was initially filed on February 29, 2024. Musk’s main contention was that OpenAI had deviated from its original mission, particularly criticizing its partnerships with tech giants like Microsoft and the closed-source launch of ChatGPT-4.

Elon Musk argued that these moves were contrary to the non-profit, open-source principles on which OpenAI was founded. He sought an injunction to prevent the for-profit exploitation of artificial general intelligence (AGI) technology, alongside filing complaints for fiduciary duty violations and unfair business practices.

Concerns Over OpenAI’s Direction

At the heart of Musk’s grievances was OpenAI’s collaboration with Microsoft. This partnership aimed to advance AGI technology, but Musk felt it compromised the company’s original ethos. Furthermore, the launch of ChatGPT-4 in a closed-source manner was seen by Musk as a significant shift away from transparency and open collaboration.

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In his lawsuit, Elon Musk urged OpenAI to return to its open-source roots, emphasizing that AGI technology should be developed transparently and for the public good. His legal action was part of a broader concern about the direction in which AI development was heading, particularly regarding its commercialization.

Elon Musk Not Happy with OpenAI and Apple

More recently, Musk’s dissatisfaction with OpenAI extended to its partnership with Apple. This collaboration will see ChatGPT integrated into Apple’s operating systems for iPhone, iPad, and Mac. Musk criticized this move as an “unacceptable security violation,” arguing that it compromised user privacy by entrusting sensitive data to a third-party company.

Apple, however, has assured users that their IP addresses will remain obscured and that OpenAI will not store data requests. Apple emphasized its “privacy promise,” stating that its intelligence system is designed to be aware of personal data without actually collecting it.

Musk’s Competing Interests in AI

Elon Musk’s concerns about AI are not limited to OpenAI. Last November, he launched Grok, an AI chatbot intended to compete with ChatGPT. The venture is backed by xAI, a firm that secured $6 billion in funding from major investors, including Valor Equity Partners, Andreessen Horowitz, Sequoia Capital, and Fidelity Management & Research Company.