Elon Musk is No Longer Suing OpenAI for ‘Breach of Contract’

There's no love lost between Elon Musk and OpenAI, which has been apparent ever since the tech billionaire criticized the AI startup for its alleged unethical practices in the development of AI technology. That argument was the basis of a lawsuit filed by Elon Musk, but he decided to drop it just after another strong statement.

Elon Musk

(Photo : Apu Gomes/Getty Images)

Musk Drops His Lawsuit Against OpenAI

Everyone can agree that AI should be developed with the benefit of humans in mind, carefully not advancing it to the point that some may be harmed by it. Musk is arguably one of the biggest advocates of that ideal, and he has the resources to fight for those ideals, albeit briefly.

The lawsuit states that OpenAI "breached" its contract by failing to create AI technology that would be for the good of the people. The tech billionaire, however, dropped the case just before the court could review OpenAI's request to dismiss it.

Musk can still reopen the lawsuit, as per The Verge, since the case was dismissed without prejudice. It might've been the better option. Some argue that there is no case since OpenAI did not breach any contract to begin with as it does not exist.

There is no legitimate contract where OpenAI made no such promises of making the company nonprofit when it was founded, as well as keeping the technology open source. The AI company also clarified that there was "no agreement at all."

With the creation of an ethical AI in mind, Musk, the co-founder of OpenAI, has founded another company called xAI. It's through this company that the creation of Grok AI became possible, and it is now accessible to X users with a Premium subscription.

Read Also: Elon Musk Threatens to Ban Apple Devices Amid Recent Partnership With OpenAI

Just a Day After Criticizing Apple

Not surprising considering Elon Musk's reactions to certain situations in the past, he made the bold statement expressing that he will ban Apple products at his companies due to the iPhone maker's partnership with OpenAI.

This was his response to Apple's WWDC 2024 news which says that there is an option to integrate ChatGPT across its software including the now AI-powered Siri. "When a user grants permission, Siri can tap into ChatGPT's broad world knowledge and present an answer directly," Apple announced.

Elon Musk then took to X and said that if Apple integrates OpenAI "at OS level," Apple devices will be banned from his companies, as reported by Business Insider. "That is an unacceptable security violation," the tech billionaire continued.

He also expressed that it was "patently absurd that Apple isn't smart enough to make their own AI," but could ensure that OpenAI would protect its users' security and privacy. "Apple has no clue what's actually going on once they hand your data over to OpenAI."

This isn't even the first time that Elon Musk had problems with Apple. He did so back in late 2022 as well pointing at the App Store commission charge for in-app purchases. That has since been resolved, but Musk just can't stop himself from starting another fight with the tech giant. 

Related: OpenAI Mocks Elon Musk for 'Incoherent,' 'Frivolous' Lawsuit

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