Elon Musk is intensifying his legal fight against OpenAI, broadening his lawsuit to include Microsoft and allegations of antitrust violations. Filed in federal court in Oakland, California, the amended suit accuses both companies of conspiring to dominate the market for generative AI, stifling competition in the process.
The lawsuit, originally filed in August, claims that OpenAI, which Musk co-founded, has shifted from its nonprofit roots to a $157 billion behemoth driven by profit, at the expense of public good. Musk’s legal team seeks to void OpenAI’s partnership with Microsoft and force the companies to relinquish their “ill-gotten” gains.
Musk’s complaint paints OpenAI’s transformation into a profit-driven entity as unprecedented. “Never before has a corporation gone from tax-exempt charity to a $157 billion for-profit, market-paralyzing gorgon — and in just eight years,” the filing states.
In response, OpenAI has dismissed the lawsuit as “baseless and overreaching,” while Microsoft, the largest backer of OpenAI, has chosen not to comment. Musk’s attorney, Marc Toberoff, added that Microsoft’s anticompetitive actions have reached a new level, emphasizing that “sunlight is the best disinfectant.”
Musk’s opposition to OpenAI has been brewing for some time, particularly given his role in its founding and the company’s subsequent growth with the help of Microsoft’s billions in funding. The expanded suit further alleges that the companies violated antitrust laws by conditioning investments on agreements that excluded rival businesses, positioning their exclusive licensing deal as a merger that bypassed regulatory scrutiny.
OpenAI, in its own court filings, has suggested that Musk’s legal actions are part of a broader strategy to undermine the company for personal gain. The high-profile case continues to evolve as Musk takes aim at the influential AI players shaping the industry’s future.
