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Elon Musk Drops Lawsuit Against OpenAI and CEO Sam Altman

Elon Musk, Openai

Elon Musk has decided to drop his lawsuit against OpenAI and its CEO, Sam Altman, which claimed the artificial intelligence company strayed from its initial goal to create AI to serve mankind, not for profit.

Legal Proceedings and Dismissal

On June 11, court records in the San Francisco Superior Court show Musk’s lawyers asked to discharge the breach of contract action without prejudice.

The dismissal without prejudice lets Musk file once more in the future since it indicates the lawsuit isn’t thrown out permanently.

According to earlier court records, it arrived one day before a federal judge was due to decide whether to dismiss the case or allow it to proceed.

Regarding his choice to abandon the lawsuit, Musk withheld a comment.

Original Grievances and Allegations

Claiming the ChatGPT-creator company strayed from its original goal to create its massive language models for the “benefit of mankind, not profit,” Musk sued OpenAI and Altman on February 29, 2024, for breach of contract.

His grievances focused especially on OpenAI’s partnerships with Microsoft, a corporate behemoth, to create artificial general intelligence (AGI) technologies and the decision to introduce ChatGPT-4 under a closed-sourced approach.

Musk at the time asked OpenAI to go back to its open-source values and sought an injunction to stop the for-profit use of artificial general intelligence software.

Against OpenAI, Musk also registered charges for unfair business practices and fiduciary responsibility violations.

Ongoing Concerns and Rival Ventures

The billionaire’s most recent OpenAI concern is a collaboration with Apple, wherein ChatGPT would be included in Mac, iPad, and iPhone running systems.

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By handing privacy and security to a third-party like OpenAI, Musk argues Apple’s choice is an “unacceptable security violation” against Apple users.

Apple contends, however, that OpenAI would not save data requests, and user IP addresses would remain hidden.

In discussing the “privacy promise” of Apple Intelligence, Apple emphasized that it is aware of your personal data without collecting it.

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Aiming to rival companies like ChatGPT, Musk helped start the AI chatbot Grok last November.

Late May saw the firm behind Grok, xAI, land $6 billion in investment from Valor Equity Partners, Andreessen Horowitz, Sequoia Capital, and Fidelity Management & Research Company.

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