Elon Musk, the founder of Tesla and SpaceX, is facing a potential new development in his legal dispute with OpenAI and its investor Microsoft. Recently, OpenAI and Microsoft filed a motion in a California federal court to dismiss Musk's lawsuit, stating that the 105-page complaint Musk presented is baseless and filled with unfounded theories.

Desk Lawsuit Legal (1)

Image Source Note: Image generated by AI, image licensed from Midjourney

The origins of this series of disputes can be traced back to March 2024, when Musk sued OpenAI, accusing it of breaching contracts, engaging in unfair business practices, and failing to fulfill fiduciary duties. Musk claimed in the lawsuit that the relationship between OpenAI and Microsoft has transformed OpenAI into a for-profit entity, violating its original mission. In response, OpenAI publicly released a series of emails with Musk, showing that he had attempted to control the organization but parted ways in 2018 after failing to do so.

OpenAI's legal team pointed out in the motion that Musk's lawsuit is an expression of "seeking litigation for his own grievances," claiming that it lacks substantial evidence and legal basis. Musk later included Microsoft in the lawsuit, accusing it of playing an improper role in the dispute. However, Microsoft responded in its legal documents that Musk's accusations lack specific facts and are baseless, asserting that it had no connection to the founding process of OpenAI and should not be a defendant in this lawsuit.

Additionally, Musk's legal team had requested a preliminary injunction against OpenAI last December, arguing that OpenAI's transformation into a public benefit corporation would cause irreparable harm to him. However, a judge in the Northern District of California recently stated that Musk's claims of irreversible harm seem somewhat exaggerated, although she acknowledged the close relationship between Microsoft and OpenAI, deciding to allow the case to proceed.

The judge mentioned, "The situation Musk describes may indeed be true, and we will verify this through trial." It is clear that, despite OpenAI and Microsoft's desire to quickly dismiss the lawsuit, the case will still move into the courtroom for further proceedings.

Key Points:

🌟 Musk sues OpenAI and Microsoft, accusing them of improper business practices, drawing widespread attention.

📩 OpenAI and Microsoft claim Musk's accusations are unfounded and request the court to dismiss the lawsuit.

⚖️ The judge has decided to allow the case to proceed, verifying whether Musk's allegations hold up in trial.