Elon Musk has dropped his lawsuit against OpenAI, the company he helped start, because of negative feedback about its partnership with Apple and a desire to focus on building his own AI company, xAI.
Elon Musk has dropped his lawsuit against OpenAI, the 2015 company he helped start. On June 11, just one day before an unofficial meeting to discuss the discovery process, Musk dropped the lawsuit, according to court records from the Superior Court of California.
Musk sued OpenAI in March 2024 for violation of contracts, unfair business practices, and failure to perform. He clarified that the company persuaded him to give them money because they would only use their assets to develop AI for the public good, with safety being the only barrier.
There were also claims of breach of contract, promissory estoppel, breach of fiduciary duty, unfair business practices, and accounting in the lawsuit. The plaintiff requested assistance with all of these things.
When Musk filed to drop the case, he didn’t say why he was giving up the suit. OpenAI had previously said that Musk’s claims were “incoherent” and that his breach claims were difficult to prove because he couldn’t show a contract.
They said that the papers Musk gave them didn’t match up with what he said about the agreement’s terms.
Musk, who is adamantly opposed to Apple’s plans to integrate ChatGPT into its operating systems, dropped the lawsuit at this time.
Musk criticizes Apple over security, blocks devices from xAI integration
Musk said he would not allow Apple devices to work with his companies during Apple’s keynote event, where they announced Apple Intelligence for iOS 18, iPadOS 18, and macOS Sequoia.
He stated that we could not tolerate the integration as a security breach.
Even though Apple and OpenAI said they would only share user data with clear permission and keep interactions safe, Musk doubted Apple’s ability to keep information safe, saying, “Apple has no idea what’s going on once they hand your data over to OpenAI.” “They’re giving you away for free.”
Since using OpenAI, Musk has also started his own AI company called xAI and raised more than $6 billion to support his plans to improve the Grok chatbot on his social network X.
It’s still not clear why Musk dropped the lawsuit against OpenAI, but his actions suggest that he may be shifting his attention to advancing his own AI projects while continuing to criticize OpenAI on social media instead of in court.
