This is HODL FM with its latest scoop of Web3 Trends. Our subject today is Elon Musk’s decision to dismiss his lawsuit against OpenAI.
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Elon Musk decided to withdraw his breach of contract lawsuit against OpenAI and its boss, Sam Altman, months after pointing fingers at the artificial intelligence firm for deviating from its original mission of creating AI that impacts humanity.
The billionaire’s attorneys asked the court to dismiss the accusations without prejudice on June 11, just a day before the hearing in front of a federal judge who would decide whether to dismiss or proceed with the case. A dismissal without prejudice indicates that Elon Musk may have dropped the lawsuit for now, but there are chances of reopening it in the future. Meanwhile, the SpaceX founder did not provide any reasons for the withdrawal.
Elon Musk sued Sam Altman and OpenAI on February 29, 2024, accusing both of deviating from the organization’s original mission of developing impactful large language models (LLM) that benefit humanity and not for profit. One of the bones of contention in his accusation was a partnership between Microsoft and OpenAI, which is set to launch GPT-4 using a closed-source approach.
During the lawsuit’s filing, the billionaire urged OpenAI to revisit its open-source values and even ordered an injunction to prevent the for-profit exploitation of AGI technology.
OpenAI’s Partnership With Apple Does Not Sit Well with Musk
Other accusations against OpenAI in the filings included unfair business practices and fiduciary duty violations. Recently, Musk also claimed OpenAI’s latest move to partner with Apple was unacceptable and a clear security violation. As per OpenAI, the partnership involved integrating iPhones, Macs, and iPads with ChatGPT.
According to Musk, entrusting Apple’s data, privacy, and security to a third party like OpenAI was equivalent to violating users’ rights.
However, Apple refuted the claims and said user IP addresses would remain obscured and that OpenAI would not provide any form of data storage throughout the partnership. While talking about its promise of privacy, Apple insisted that it is always aware of your personal data as users without having to collect it.
Out of his dissatisfaction with OpenAI, Elon Musk helped launch an AI chatbot called Grok, which was going to compete with ChatGPT. xAI, the parent company behind Grok, received $6 billion in a round of funding led by Andreessen Horowitz, Valor Equity Partners, Fidelity Management & Research Company, and Sequoia Capital.
Industry Reactions
However, some users came out strongly against Musk and questioned why it felt right to demand a driver’s license, home addresses, and facial recognition for everyone to be eligible for the X revenue sharing program. If he is going to demand all those credentials, maybe it’s time he let others like OpenAI do the same.
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Nonetheless, there are those that urged the billionaire to kick off the X Phone and have his own operating software for the phone, alongside Grok AI.
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