Ilon Musk has withdrawn his lawsuit against OpenAI

OpenAI’s co-founder has withdrawn his breach of contract lawsuit against the company.

OpenAI’s co-founder has withdrawn his breach of contract lawsuit against the company.

In the lawsuit, Musk accused the company of breach of contract and allegedly abandoning its mission to create artificial intelligence technology for the benefit of humanity. As CNBC previously reported, the case was dismissed without prejudice, which means Musk can file it again.

Musk’s decision to withdraw the claim filed in California state court in February (case number CGC24612746) came just a day before a scheduled hearing at which a judge was to consider OpenAI’s request to dismiss the case. It also came a day after Musk said he would ban Apple devices from his companies if the company integrated OpenAI technology into iPhones and Macs «at the OS level» among other outlandish threats.

Musk has said he would ban Apple devices from his companies if the company integrated OpenAI technology into iPhones and Macs «at the OS level» among other outlandish threats.

His lawsuit alleges that OpenAI has violated an agreement it made with Musk and other founding members, who pledged to make OpenAI a nonprofit organization and keep its technology open source.

The lawsuit alleges that OpenAI has violated an agreement it made with Musk and other founding members, who pledged to make OpenAI a nonprofit organization and keep its technology open source.

There are some problems with Musk’s case, however, as The Verge’s Nilay Patel notes:

Mask explicitly states that OpenAI broke a contract that doesn’t exist. It simply doesn’t exist! The lawsuit mentions the «Founders Agreement» but no such agreement is attached as an exhibit, and the breach of contract claim admits that the «Founders Agreement» — is essentially a weather vane that everyone picked up on in a few emails.

Musk’s claim that OpenAI has breached the contract is not true.

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OpenAI denied Musk’s claims shortly after the lawsuit was filed, saying the billionaire wanted to gain «absolute control» of the company by merging it with Tesla. The company also said there was «no agreement with Musk».

OpenAI also said it had no agreement with Musk.

Last year, Musk founded his own AI company called xAI, which created the Grok AI chatbot, available on an X Premium subscription. Since then, the company has raised $6 billion from investors to fund the expensive chips needed to run its AI system. Last week, CNBC reported on emails showing that Musk had diverted thousands of Nvidia H100 AI chips that had been reserved for Tesla to X.

Musk’s company has been diverting thousands of Nvidia H100 AI chips that had been reserved for Tesla.