Elon Musk Expands Lawsuit Against OpenAI,
Blasts 'Ill-gotten Gains' with Microsoft
Billionaire entrepreneur Elon Musk has expanded his lawsuit against ChatGPT maker OpenAI, adding federal antitrust claims and naming OpenAI's largest financial backer Microsoft as a defendant.
According to the amended lawsuit, filed in federal court in Oakland, California, Microsoft and OpenAI allegedly sought to illegally monopolize the market for generative artificial intelligence and sideline competitors. The complaint maintains the original accusations against OpenAI and CEO Sam Altman of violating contract provisions by prioritizing profits over public good in advancing AI technology.
"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 stated. The lawsuit seeks to void OpenAI's license with Microsoft and force the companies to divest what it terms "ill-gotten" gains.
OpenAI responded to the allegations, stating that the latest lawsuit "is even more baseless and overreaching than the previous ones." Microsoft declined to comment on the matter.
"Microsoft's anticompetitive practices have escalated," said Marc Toberoff, Musk's attorney, in a statement. "Sunlight is the best disinfectant."
The expanded lawsuit alleges that OpenAI and Microsoft violated antitrust law by conditioning investment opportunities on agreements not to deal with competitors. It further claims that the companies' exclusive licensing agreement effectively constituted a merger without proper regulatory approvals.
Musk, who co-founded OpenAI before parting ways with the company, has maintained ongoing opposition to the startup, which has become a prominent figure in generative AI through substantial Microsoft funding.
In a previous court filing, OpenAI characterized Musk's lawsuit as part of an "increasingly blusterous campaign to harass OpenAI for his own competitive advantage."