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Elon Musk offers to withdraw lawsuit if OpenAI rebrands to ClosedAI

Elon Musk has proposed a ceasefire in the legal dispute between his companies and OpenAI, the creators of ChatGPT. The conflict arose when Musk, CEO of both Tesla and SpaceX, filed a lawsuit against OpenAI and its CEO, Sam Altman, accusing them of breaching contractual agreements related to artificial intelligence (AI) development.

In response to Musk’s allegations, OpenAI swiftly countered, revealing that the dispute stemmed from discussions about transitioning to a for-profit structure. They claimed that Musk had proposed merging with Tesla or gaining full control over OpenAI, demands that clashed with the organization’s mission.

OpenAI made it clear that they were committed to revealing the truth about their association with Musk, dismissing his assertions. Musk, on the other hand, issued a challenge: he would drop the lawsuit if OpenAI changed its name to ‘ClosedAI’. This ultimatum highlighted the escalating tension between the two parties.


Further exacerbating the situation, Musk criticized OpenAI, urging them to abandon what he perceived as a facade. This criticism was prompted by a post on OpenAI’s official platform, ‘X’, indicating the growing rift between them.

Negotiations between Musk and OpenAI hit a roadblock when Musk allegedly withheld funding after proposing conditions such as majority equity, initial board control, and the CEO position. OpenAI’s co-founders, including Greg Brockman, Ilya Sutskever, John Schulman, Sam Altman, and Wojciech Zaremba, reiterated their stance against granting absolute control to an individual, emphasizing their organizational ethos.

Following the breakdown in negotiations, Musk parted ways with OpenAI, expressing the need for a strong competitor to Google/DeepMind and signaling his intention to pursue AI development independently. Despite the rift, Musk assured his continued support for OpenAI’s endeavors to chart a new course.

In summary, Elon Musk’s lawsuit against OpenAI over alleged breaches in AI development agreements has sparked a contentious dispute. Musk’s proposal to drop the lawsuit in exchange for a name change to ‘ClosedAI’ underscores the deepening divide between the two entities. Despite the impasse in negotiations and Musk’s subsequent departure from OpenAI, the saga underscores the complexities and challenges inherent in the intersection of technology, business, and ethics.

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