Elon Musk targets Microsoft in expanded OpenAI lawsuit
Elon Musk has expanded his lawsuit against OpenAI, accusing the company and its major financial backer, Microsoft, of engaging in illegal monopolistic practices to dominate the generative AI market and undermine competitors. The amended complaint, filed in federal court in Oakland, California, claims that OpenAI and its CEO, Sam Altman, violated contract terms by prioritizing profit over public interest in their push to advance AI technology. Musk criticized the rapid transformation of OpenAI from a nonprofit organization into a $157 billion for-profit entity, calling it an unprecedented corporate shift. The lawsuit seeks to void OpenAI’s licensing agreement with Microsoft and force the companies to divest their “ill-gotten” profits.
In response, OpenAI dismissed the lawsuit as baseless, while Microsoft declined to comment. Musk's attorney, Marc Toberoff, accused Microsoft of escalating anticompetitive practices, asserting that “sunlight is the best disinfectant.” Musk's long-standing opposition to OpenAI stems from its evolution as a leader in generative AI, largely due to Microsoft's substantial financial backing.
The expanded legal filing also alleges that Open AI and Microsoft violated antitrust laws by conditioning investment deals on agreements to exclude the companies’ rivals, arguing that their exclusive licensing agreement effectively constitutes an unapproved merger.
