Elon Musk Drops OpenAI Lawsuit: What’s Next?

Elon Musk X Twitter

Elon Musk said he will explain his decision to drop the OpenAI lawsuit later. He withdrew the lawsuit as his own AI company, xAI, is becoming a competitor to OpenAI.


Elon Musk has withdrawn his lawsuit against OpenAI and its CEO, Sam Altman, which accused them of breaking the company’s founding promise to prioritize humanity over profits. This decision came just a day before a California judge was set to hear OpenAI’s motion to dismiss the case. Musk claimed that OpenAI had become a “de facto subsidiary” of Microsoft, going against its original agreement to be a non-profit focused on developing AI for the good of humanity.

The Ongoing Conflict Between Elon Musk and OpenAI

The conflict between OpenAI and Elon Musk has been widely publicized even before the legal proceedings. Musk, one of the initial supporters and co-founders of OpenAI, later cut ties with the organization.

OpenAI responded to Musk’s claims by stating that he had previously supported the company’s transition to a for-profit entity and encouraged it to seek substantial funding. OpenAI denied any allegations of breaching a founding agreement or committing to make its technology open-source, as Musk had asserted.

In the past year, Musk launched his own AI venture, xAI, as a direct competitor to OpenAI. Recently, xAI secured a substantial $6 billion Series B funding round, attracting investments from prominent firms like Andreessen Horowitz, Sequoia Capital, and Fidelity Management & Research Company.

According to its website, xAI aims to “understand the true nature of the universe.” Last year, the company introduced Grok, a chatbot inspired by “The Hitchhiker’s Guide to the Galaxy.” Grok underwent an extensive two-month training period before its debut and features real-time internet knowledge.

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Elon Musk’s Stance on OpenAI and Apple Devices

Elon Musk did not provide an immediate explanation for his decision to withdraw the OpenAI lawsuit, but hinted in a recent message on a platform that he would address it later.

Source: X

On Monday, Musk announced his intention to ban the use of Apple Inc. devices across his companies if OpenAI’s artificial intelligence software were integrated at the operating system level. He voiced concerns about such an integration posing a potential security threat.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.


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