Elon Musk Withdraws Lawsuit Against OpenAI

Elon Musk, a co-founder of OpenAI, has dropped his lawsuit against the company and its CEO, Sam Altman. The lawsuit accused OpenAI of breaching its contract and straying from its mission to develop AI for the benefit of humanity. According to CNBC, the case was dismissed without prejudice, allowing Musk the option to refile in the future.

Musk’s decision to withdraw the lawsuit, filed in a California state court in February, came just one day before a scheduled hearing where the judge was set to consider OpenAI’s request to dismiss the case. The withdrawal also followed Musk’s recent threat to ban Apple devices at his companies if Apple integrated OpenAI’s technology into its operating systems.

The lawsuit claimed that OpenAI had violated an agreement made by Musk and other founding members to keep the organization as a nonprofit and ensure its technology remained open source.

In a related development, Musk launched his own AI company, xAI, which developed the Grok AI chatbot, accessible through an X Premium subscription. The startup has secured $6 billion from investors to support the acquisition of necessary chips for its AI systems. Recently, CNBC reported that Musk had diverted thousands of Nvidia H100 AI chips, originally intended for Tesla, to xAI.

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