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OpenAI filed a motion to dismiss Elon Musk’s high-profile lawsuit, which accused the firm of breaching contracts, engaging in fraud, and violating racketeering laws. The motion, filed in the US District Court for the Northern District of California, argues that Musk’s claims are legally unfounded and are part of a broader strategy to gain a competitive advantage in the AI industry. Musk, who co-founded OpenAI in 2015, filed the lawsuit in August after retracting an earlier lawsuit. The lawsuit accused the company of abandoning its non-profit mission in favor of commercial partnerships, including a deal with Microsoft. Musk claims that OpenAI’s actions breached an agreement to open-source its technology for the public good and refrain from licensing it to for-profit entities. Musk further accuses OpenAI of engaging in fraud, unjust enrichment, and violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act. OpenAI disputes existence of contract OpenAI’s motion to dismiss centers on the argument that Musk’s breach of contract claims are baseless because no enforceable contract existed between Musk and OpenAI. The firm argued that the 2015 correspondence Musk relied on to assert the existence of a “Founding Agreement” were informal discussions and not legally binding commitments. Additionally, OpenAI claims the emails and statements Musk points to were part of early-stage talks about the firm’s mission but do not establish any contractual obligations to open-source its technology or avoid for-profit partnerships. According to the filing: “Musk cannot point to any specific promise made by OpenAI to support his claims.” The defense emphasized that Musk’s donations to OpenAI, which began a year after the alleged agreement was formed, do not constitute bargained-for consideration, which is a necessary component of a valid contract. Additionally, OpenAI asserts that the terms Musk claims were breached — such as the commitment to avoid licensing…

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Filed under: News - @ October 9, 2024 7:21 pm