Musk Expands OpenAI Lawsuit, Adding Microsoft and Antitrust Claims
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Elon Musk has significantly broadened his lawsuit against OpenAI, the creator of ChatGPT, adding federal antitrust claims and naming OpenAI's major financial backer, Microsoft, as a co-defendant.
Reuters reported that the amended complaint, filed Thursday in a California federal court, alleges that Microsoft and OpenAI engaged in anticompetitive practices to monopolize the generative artificial intelligence market and suppress competitors. The lawsuit echoes Musk's original August complaint, accusing OpenAI and its CEO, Sam Altman, of violating contractual obligations by prioritizing profit over the public good in their pursuit of advanced AI.
"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 complaint states. The lawsuit seeks to invalidate OpenAI's license with Microsoft and force the divestiture of what it terms "ill-gotten" gains.
OpenAI responded to the amended lawsuit, calling it "even more baseless and overreaching than the previous ones." Microsoft declined to comment.
Musk's attorney, Marc Toberoff, stated that Microsoft's alleged anticompetitive actions have intensified, emphasizing the need for transparency.
The expanded lawsuit contends that OpenAI and Microsoft violated antitrust laws by conditioning investment opportunities on agreements to not work with rival companies. It further claims that their exclusive licensing agreement constitutes an unapproved merger.
In a prior court filing last month, OpenAI accused Musk of using the lawsuit as part of a campaign to harass the company for his own competitive benefit. Musk's increased prominence within President-elect Donald Trump's incoming administration adds another layer to the ongoing legal battle. Trump appointed Musk to a new role focused on government waste reduction following substantial campaign donations from Musk.