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Elon Musk Drops Lawsuit Against Openai

Tesla CEO Elon Musk leaves the Tesla Gigafactory for electric cars after a visit in Gruenheide near Berlin, Germany, March 13, 2024. If Tesla shareholders vote against restoring Elon Musk's $44

Elon Musk has decided to drop his lawsuit against OpenAI just before a scheduled hearing on the case. The lawsuit, filed in February at San Francisco Superior Court, accused the San Francisco artificial intelligence company and its CEO of betraying the founding aims of benefiting humanity by pursuing profits.

Musk alleged that when he helped create OpenAI, there was an agreement in place to keep the company as a nonprofit focused on developing technology for the public good and keeping its code open. However, Musk claimed that by forming a close relationship with Microsoft, OpenAI and its top executives were deviating from this mission.

Legal experts had expressed skepticism about the likelihood of Musk's claims succeeding in court, as they revolved around breach of contract, breach of fiduciary duty, and unfair business practices. Musk's lawyer filed a notice seeking to dismiss the entire case without providing an explanation for the decision.

Both Musk's legal team and OpenAI have not yet commented on the development. The lawsuit, which had raised questions about the future direction of OpenAI and its commitment to its original goals, has now been dropped.

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