Elon Musk drops lawsuit against ChatGPT creator OpenAI

Jitendra Soni
OpenAI and Elon Musk

Tesla’s boss has not given any reason for withdrawing the breach of contract lawsuit against OpenAI and its CEO, Sam Altman.

Elon Musk voluntarily withdrew the lawsuit against OpenAI and its CEO, Sam Altman, just 24 hours before its scheduled hearing. In March 2024, Musk accused OpenAI and its CEO of drifting from its original mission to “benefit humanity”.

In his complaint, Musk alleged that OpenAI’s multi-million deal with Microsoft breached a Founding Agreement to keep OpenAI a nonprofit and its technology open source. However, the complaint filed by Musk did not have any Founding Agreement attached as an exhibit.

He also alleged that OpenAI is working closely with Microsoft to create “proprietary technology to maximize profits for literally the largest company in the world.”

OpenAI, on the other hand, dismissed these claims and said there was no such agreement. The company also alleged that the billionaire wanted “absolute control over OpenAI” and even suggested “merging OpenAI into Tesla.”

Musk denied sharing any details about the withdrawal of the complaint and responded, “More on this later,” to a tweet.

Musk co-founded OpenAI with Sam Altman in 2015 and donated $44 million to the group. However, in 2018, he left the board due to disagreements regarding the research direction.

Then, in July last year, Musk founded a new AI company, xAI, to “understand the true nature of the universe,” even though he calls the tech an “existential threat” to humanity.

Earlier this week, he criticized Apple’s decision to integrate ChatGPT deeper into its ecosystem and even warned that “Apple devices will be banned at my company.” He called this collaboration an unacceptable security violation and stated, “Visitors will have to check their Apple devices at the door, where they will be stored in a Faraday cage.”