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Musk retreats from AI lawsuit

by on12 June 2024


It is easier to trash talk on social media, where you don’t have to prove anything

Elon [look at me] Musk pulled a court case against OpenAI after it looked like he would be found to have been doing what he claimed OpenAI was doing.

For those who came in late, Musk sued OpenAI, claiming that it had gone against its open, saucy roots. He said that when he was involved with the company it was not all about the cash.

Musk, who helped establish OpenAI alongside its present CEO, Sam Altman, parted ways with the board in 2018.

However, Musk was somewhat taken aback when OpenAI released emails showing that he was actively campaigning for OpenAI to move to a “for-profit” structure, earn cash, and want it under the umbrella of his companies.

We guess that until he saw those emails, Musk had forgotten all about them – we mean, he does have a lot on his mind, what with starting his own AI company.

In a court filing, OpenAI described the lawsuit as a contrived attempt by Musk to advance his own AI interests.

OpenAI and an attorney for Musk did not immediately respond to requests for comment.

Musk dismissed his case without prejudice, which means he could refile it at another time.

Musk probably had more luck making attacks against OpenAI on social media.

In fact, observers think that Musk's engagement with the OpenAI lawsuit may have been less about securing a legal victory and more about publicly chastising Altman and OpenAI. This is something that very rich men can do.

Meanwhile, Musk has been courting investors by portraying EV behemoth Tesla as an "AI or robotics firm."

In addition to teasing a robotaxi design, Musk has been touting the firm's Optimus robots as "exceeding the combined value of all else."

It is worth pointing out that neither of these designs exists outside of Musk’s head, however he has been raising money for his AI project.

Subsequently, in late May, Musk disclosed that his AI venture, xAI, garnered $6 billion in Series B funding, culminating in a total valuation of $24 billion. This positions Musk's xAI as the second most esteemed AI entity, trailing behind OpenAI, which boasts an approximate valuation of $80 billion.

Last modified on 12 June 2024
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