Elon Musk and Sam Altman end their legal dispute with OpenAI.

• On Tuesday, Elon Musk dropped his lawsuit against OpenAI and two of its founders, Sam Altman and Greg Brockman, in a California state court.
• On Wednesday in San Francisco, a hearing was scheduled to determine if the case against the defendants, including Altman and Brockman, the CEO and president of OpenAI, respectively, should be dismissed as requested.
• In March, CNBC reported that the legal foundation of the case was questionable because the contract at its core was not a formal written agreement that was signed by all parties involved, as experts had told them.

On Tuesday, Elon Musk dropped his lawsuit against OpenAI and two of its founders, Sam Altman and Greg Brockman, in California state court. This decision came a day after Musk publicly criticized OpenAI and its new partnership with Apple.

According to a court filing obtained by CNBC, the case was dismissed without prejudice.

In February, a lawsuit was filed by Musk against OpenAI, Altman, and Brockman, the CEO and president of OpenAI, for breach of contract and fiduciary duty.

On Wednesday in San Francisco, a judge was to decide whether to dismiss the case as requested by the defendants.

In March, CNBC reported that the legal foundation of the case was questionable because the contract at its core was not a formal written agreement that was signed by all parties involved, as experts had told them.

The initial goal of the OpenAI team was to create artificial general intelligence, or AGI, with the intention of benefiting humanity. However, the project has evolved into a profit-driven entity that is largely controlled by Microsoft, the principal shareholder.

In March, Musk filed a 35-page complaint (with attached exhibits) to remind the world of his role in creating a company that has since become one of the most successful startups globally, with OpenAI being ranked first on CNBC's Disruptor 50 list in 2023, largely due to the viral popularity of ChatGPT.

"While it effectively promotes Elon Musk's advantages, I'm uncertain about its legality, said Kevin O'Brien, a partner at Ford O'Brien Landy LLP and a former assistant U.S. attorney, to CNBC at the time."

This month, xAI, a startup founded by Musk that competes with OpenAI, announced a $6 billion Series B funding round, with investors including Andreessen Horowitz, Sequoia Capital, and Fidelity Management & Research Company.

X.AI aims to "comprehend the authentic essence of the cosmos," as stated on its website. In the previous year, X.AI introduced a chatbot called Grok, which the company asserts is based on "The Hitchhiker's Guide to the Galaxy." The chatbot commenced with two months of instruction and boasts real-time knowledge of the internet, according to the company.

No immediate response was received from the representatives of Musk and Altman when requested for comment.

—CNBC's Lora Kolodny contributed to this report.

An earlier version of this story incorrectly stated the month when the lawsuit was filed. The correct month is February.