Musk Drops His Lawsuit against OpenAI after 3-Month Battle

After almost three months, Elon Musk has finally dropped his lawsuit against OpenAI that accused the company of breaching their founding agreement.

Interestingly, Elon Musk has not cited any reason behind this sudden change of heart.

OpenAI’s fierce battle against this lawsuit might be one of the reasons, though.

Elon Musk has dropped his lawsuit against OpenAI and its CEO Sam Altman. On Tuesday (June 11), Musk’s lawyers moved to get the procedure started, marking the end of the legal battle that has been going on since March.

In case you didn’t know, Elon Musk is a co-founder of OpenAI. In the lawsuit, he claimed that he had a “founding agreement” with OpenAI that it was violating.

Elon Musk also added that by partnering with Microsoft, OpenAI is digressing from its original vision, which was to be a research-focused non-profit AI organization.

Elon Musk also sought a jury trial and wanted OpenAI to pay back any profit it had made from the business.

However, the reason behind Elon’s sudden change of heart is unknown but we can always speculate. Here are a couple of possible reasons:

Reason #1

One very possible reason might be that Musk realized he wasn’t going to win this case. After OpenAI made his past emails public (more on that later) through a blog, there was no way his claims would stand in court.

Reason #2

This one might seem a little far-fetched, but it’s still possible. Just a couple of days ago, Elon Musk criticized the Apple-OpenAI partnership (which was announced at Apple’s WWDC24) and said that the latter cannot be trusted with user data.

Elon went as far as threatening the ban of Apple devices at his companies if OpenAI is deeply integrated with Apple.

Maybe Musk felt that if he has an ongoing legal case against OpenAI and at the same time goes on to openly criticize its partnership, it might seem like he has a personal vendetta against the company, which might render his arguments unattended.

The public perception of Musk having a personal bone to pick with OpenAI is very much possible considering that he was a founding member of OpenAI and one of its biggest investors—and that now they’re both competing against each other in the AI space.

However, it’s important to note that this is nothing but speculation. Elon Musk and his team were not available to make a comment and until they do, we won’t know for sure what exactly prompted this decision.

What Did OpenAI Say in Response?

OpenAI was quick to push back against the lawsuit and called it “incoherent” and “frivolous”. It also requested the court to dismiss the case immediately since it was baseless.

First, OpenAI made it very clear that there was no “founding agreement” or any other agreement, for that matter, between Elon Musk and the company.

Next, OpenAI published a blog that included several past emails from Elon Musk where he wrote that it’s time for the company to focus on making some profit to fund the computing resources necessary to achieve its AI goals.

OpenAI’s leadership was rather unhappy with how things went down with Musk. After they were sued, they published a blog and said:

“We’re sad that it’s come to this with someone whom we’ve deeply admired – someone who inspired us to aim higher, then told us we would fail, started a competitor, and then sued us when we started making meaningful progress towards OpenAI‘s mission without him.”

Just because OpenAI is off the hook this time doesn’t mean Musk’s claims were all baseless, because he isn’t the only one questioning OpenAI’s profit-hungry motives.

Recently, a string of top-level executives left OpenAI. While some left with sealed lips, others revealed that it was because OpenAI is prioritizing profit over safe and sustainable AI development.

In response to this, OpenAI established a new safety committee that will handle product security. But how effective this committee will be and whether OpenAI can truly be considered a safety-first AI company are yet to be seen.

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