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Elon Musk drops suit against OpenAI and Sam Altman

Tuesday withdrew his lawsuit against OpenAI and two of the company's co-founders, Sam Altman and Greg Brockman, in California state court. In March, Musk had filed a lawsuit for breach of contract and fiduciary duty.

Experts told CNBC in March that the case was built on a questionable legal foundation, because the contract at the heart of the suit was not a formal written agreement that was signed by all parties involved. Rather, Musk had alleged that the early OpenAI team had set out to develop artificial general intelligence, or AGI, "for the benefit of humanity," but that the project has been transformed into a for-profit entity that's largely controlled by principal shareholder Microsoft. Musk had used much of the 35-page complaint (plus attached exhibits) he filed in March to remind the world of his position in the creation of a company that's since become one of the hottest startups on the planet, (OpenAI ranked first on CNBC's Disruptor 50 list in 2023) thanks largely to the viral spread of ChatGPT.

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