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Elon Musk Drops the Lawsuit on OpenAI For Breach of Mission, What’s Next?

Elon Musk said that he would choose to speak later on his decision to withdraw the OpenAI lawsuit.
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Elon Musk Drops the Lawsuit on OpenAI For Breach of Mission, What’s Next?

Highlights

  • The lawsuit alleged that OpenAI violated its founding promise of prioritizing humanity over profits.
  • OpenAI refuted Musk's claims, stating that he had previously supported the company's transition to a for-profit entity.
  • Musk's withdrawal of the lawsuit comes amidst his own AI venture, xAI, emerging as a competitor to OpenAI.

In the latest development, Elon Musk has withdrawn his lawsuit complaint accusing OpenAI and its CEO Sam Altman of breaching the company’s founding promise of prioritizing humanity over profits.

Just a day before a California judge was scheduled to hear OpenAI’s motion for dismissal, the billionaire withdrew his complaint. Musk had alleged that the company had transformed into a “de facto subsidiary” of Microsoft Corp., contravening the original agreement to operate as a non-profit organization focused on developing artificial intelligence for the betterment of humanity.

Elon Musk vs OpenAI

The conflict between OpenAI and Musk has been widely covered long before the legal proceedings. Musk was among the initial supporters and co-founders of the startup but later severed ties with the organization.

OpenAI countered Musk’s claims by asserting that he had previously supported the company’s transition to a for-profit entity and encouraged it to seek substantial funding. OpenAI refuted any allegations of breaching a founding agreement or committing to make its technology open-source, as Musk has 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 investment from prominent firms like Andreessen Horowitz, Sequoia Capital, and Fidelity Management & Research Company.

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

What’s ahead from Musk?

Elon Musk didn’t explain regarding his sudden change of heart and why he decided to withdraw the OpenAI lawsuit. However, in his recent message on x platform, Musk said that he would speak on this later.

Musk declared on Monday that he would prohibit the use of Apple Inc. devices across his companies if OpenAI’s artificial intelligence software were to be integrated at the operating system level. He labeled such an alliance as a potential security threat.

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Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

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