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Elon Musk withdraws his lawsuit against OpenAI

The lawsuit, initially filed in a California state court in February, was dropped just a day before the scheduled hearing to review OpenAI’s motion to dismiss the case.

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Elon Musk has withdrawn his lawsuit against OpenAI and its CEO, Sam Altman, which accused the company of breaching its contract and straying from its mission to create AI technology for the benefit of humanity. CNBC previously reported that the case was dismissed without prejudice, allowing Musk the option to refile it in the future.

The lawsuit, initially filed in a California state court in February, was dropped just a day before a scheduled hearing to review OpenAI’s motion to dismiss the case. This decision also came a day after Musk threatened to ban Apple devices at his companies if Apple integrates OpenAI’s technology into the iPhone and Mac operating systems, among other unusual threats.

Musk's lawsuit claimed that OpenAI violated an agreement with him and other founding members to maintain OpenAI as a nonprofit and keep its technology open source. However, shortly after the lawsuit was filed, OpenAI denied Musk's claims, asserting that he wanted 'absolute control' of the company by merging it with Tesla.

The company also stated that there was 'no agreement at all' with Musk and argued that the lawsuit was based on incoherent claims, calling it a contrived effort by Musk to further his own AI interests.

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