NIX Solutions: Musk Withdraws Lawsuit Against OpenAI

Musk unexpectedly dropped his lawsuit against OpenAI and its CEO Sam Altman a day before the scheduled hearing. Lawyers pointed out serious flaws in the lawsuit, in which Musk refers to a non-existent contract and does not provide significant evidence.

NIX Solutions

In February, Musk filed a lawsuit in California state court, accusing OpenAI of violating the terms of its contract and abandoning its initially stated mission to create artificial intelligence technologies for the benefit of humanity. According to the lawsuit, OpenAI violated agreements reached with Musk and the other founders of the company. In particular, each of them committed to making OpenAI a non-profit organization and not blocking access to its technologies, keeping the source code open, The Verge reports.

Lawyers noted significant flaws in Musk’s lawsuit. First, he refers to a non-existent contract. Although the complaint refers to a “Memorandum of Incorporation,” no such document was adduced into evidence. Secondly, it is recognized that this agreement was rather declarative in nature and was based on general sentiments expressed in correspondence.

OpenAI’s Response and Musk’s New Ventures

OpenAI itself denied Musk’s accusations immediately after filing the lawsuit. The company said the billionaire simply wanted to gain full control of it through a merger with Tesla. It was emphasized that no legally binding agreement was concluded with Musk, notes NIX Solutions.

Let us remind that last year Musk founded his own company in the field of artificial intelligence, xAI. The developers created the Grok AI chatbot, available with an X Premium subscription, and attracted $6 billion in investment for development and expensive chips. According to media reports, Musk redirected thousands of Nvidia H100 chips, originally intended for Tesla, to the needs of xAI.

Potential Resumption of Legal Battle

The withdrawal of the lawsuit against OpenAI may be due to Musk’s desire to focus on the development of his own project in the field of AI. However, the legal battle with OpenAI may resume as Musk voluntarily withdrew his lawsuit before the first hearing. We’ll keep you updated on any further developments in this ongoing saga.