Skip to page content

Elon Musk withdraws lawsuit against OpenAI, Sam Altman


Elon Musk
Elon Musk, the founder and chief executive of Tesla, agreed to a settlement Sept. 29 with the SEC that will allow him to stay on as CEO but to relinquish his role as chairman.
Mario Tama/Getty Images

The lawsuit filed by Elon Musk earlier this year against OpenAI, Sam Altman and others was dismissed on Tuesday.

Originally filed on February 29, Musk's complaint alleged that OpenAI, Sam Altman and Greg Brockman had set "aflame" the organization's original not-for-profit, open-source mission.  

The complaint also alleged that the defendants had breached OpenAI's original terms of incorporation when the organization released GPT-4 in 2023, which the complaint described as "an AGI algorithm," referring to a so-called artificial general intelligence, a system that can approximate human intelligence.

Microsoft, an investor in OpenAI's for-profit arm, was also mentioned 68 times in the original complaint but not named as a defendant. Achieving AGI would trigger changes in OpenAI's structure, including its deal with Microsoft.

Less than a week after filing the lawsuit, Musk taunted OpenAI to change its name in exchange for dropping the lawsuit.

"Change your name (t)o ClosedAI and I will drop the lawsuit," Musk posted on his social media account via X.

Musk, an original backer of OpenAI, withdrew his support following a disagreement over control of the nonprofit. He has since backed xAI, a competing AI startup. On Monday, he protested Apple's decision to work with OpenAI, suggesting he continues to have a contentious relationship with the venture he helped start.

It's unclear what prompted the case to be dismissed.

The filing requested dismissal "without prejudice," which indicates that the plaintiff could consider filing a new but related lawsuit, possibly on different grounds.

CNBC first reported the news on Tuesday. Bay Area Inno reviewed a court document filed on Tuesday in San Francisco Superior Court that confirmed the case has been dismissed.


Keep Digging

News
News
News
Inno Insights


SpotlightMore

Raghu Ravinutala, CEO and co-founder, Yellow Messenger
See More
Image via Getty
See More
SPOTLIGHT Awards
See More
Image via Getty Images
See More

Upcoming Events More

Aug
01
TBJ
Aug
22
TBJ
Aug
29
TBJ

Want to stay ahead of who & what is next? Sent twice-a-week, the Beat is your definitive look at the Bay Area’s innovation economy, offering news, analysis & more on the people, companies & ideas driving your city forward. Follow the Beat

Sign Up