Elon Musk reportedly drops lawsuit against Sam Altman and OpenAI

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Tensions between Elon Musk and OpenAI have somewhat deescalated of late, with Musk halting a lawsuit against the company and its co-founders, Sam Altman and Greg Brockman, in the California state court.

CNBC reported that the case was dismissed with prejudice. Musk had filed the lawsuit in February earlier this year, claiming that OpenAI, co-founder Sam Altman, and C.E.O. Brian Brockman betrayed him and thatbenchmark had breached an agreement signed in 2019.

Musk’s withdrawal averted a hearing scheduled for Wednesday in San Francisco, at which the judge would have considered whether to dismiss the case.

Legal experts had previously questioned the foundation of Musk’s case in a CNBC show, noting that the contract central to the lawsuit was not a formal written agreement signed by all parties involved. Musk alleged that OpenAI, initially dedicated to developing artificial general intelligence (AGI) for the benefit of humanity, had transformed into a for-profit entity predominantly controlled by principal shareholder Microsoft.