Elon Musk withdraws lawsuit against OpenAI and co-founders

SOURCE www.cnbc.com
Elon Musk withdrew his lawsuit against OpenAI and its co-founders, Sam Altman and Greg Brockman, in California state court just one day after publicly criticizing the company. The case was dismissed without prejudice. Musk had alleged that OpenAI transformed from a project for the benefit of humanity into a for-profit entity largely controlled by Microsoft. Musk had previously filed the lawsuit in February for breach of contract and fiduciary duty.

Key Points

  • Musk alleged that OpenAI transformed into a for-profit entity controlled by Microsoft.
  • Musk's lawsuit was dismissed without prejudice.
  • Musk had previously filed the lawsuit in February for breach of contract and fiduciary duty.

Pros

  • Elon Musk's lawsuit was withdrawn without prejudice.

Cons

  • The lawsuit was built on a questionable legal foundation.
  • The contract at the heart of the suit was not a formal written agreement.