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Elon Musk drops suit he brought against OpenAI over profit motives

A lawyer for Musk filed on Tuesday to dismiss the entire case. Neither Musk nor any of his representatives have discussed why the suit would be dropped.
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Posted at 6:03 PM, Jun 12, 2024

Elon Musk has dropped a lawsuit he filed against OpenAI just before it was scheduled for a hearing on Wednesday.

A lawyer for Musk filed on Tuesday to dismiss the entire case. Neither Musk nor any of his representatives have discussed why the suit would be dropped, and neither Musk nor representatives attended a scheduled Wednesday hearing about the case.

The OpenAI logo is seen displayed on a cell phone.

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Musk sued the AI company in February, alleging the company had betrayed its originally stated goal of using AI technology to benefit humanity.

The suit alleged that Musk agreed to help fund OpenAI as long as it was run as a nonprofit for public benefit. When the company partnered with Microsoft, Musk alleged that it had become a "closed-source de facto subsidiary of the largest technology company in the world."

Musk had claimed OpenAI was in breach of contract, breach of fiduciary duty and committing unfair business practices.

At the time, OpenAI promised to get the case dismissed and released emails from Musk that showed he had discussed making OpenAI a for-profit venture.

Musk helped fund OpenAI in its early years, contributing what he says was "tens of millions of dollars." He also served on the company board starting in 2015.