Musk’s Failed OpenAI Lawsuit Underscores xAI’s Struggles
Elon Musk's lawsuit against OpenAI was dismissed by an Oakland jury, which found he waited too long to file. The trial highlighted the struggles of Musk's AI company, xAI, which has seen a decline in user engagement and employee departures. Despite Musk's ambitions, xAI is currently lagging behind competitors like OpenAI in the AI race.
- ▪An Oakland jury unanimously dismissed Musk's lawsuit against OpenAI, citing a three-year statute of limitations.
- ▪Musk's xAI has experienced a 60% drop in downloads of its chatbot Grok since January.
- ▪xAI is renting out its computing resources to Anthropic, indicating insufficient demand for its own models.
Opening excerpt (first ~120 words) tap to expand
On Monday, an Oakland jury took under two hours to unanimously reach a verdict dismissing Elon Musk’s lawsuit against Sam Altman and OpenAI. Throughout the trial Musk had portrayed it as the good fight to prevent Altman from “stealing” OpenAI, which was founded as a nonprofit. Others, however, framed it as a more cynical effort. “It’s too late now to gin up something to harm a competitor,” said OpenAI’s lead lawyer, William Savitt, during his opening arguments. In 2015, Musk co-founded OpenAI with Altman, among others, out of concern that powerful future AI systems would be developed by Google and controlled by other billionaires. He founded xAI in 2023, after a dispute over control of OpenAI.
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