Janice R. Andrews
Elon Musk has broadened his legal action against OpenAI to include Microsoft, adding antitrust allegations to his existing claims. The expanded lawsuit now features Musk’s AI company xAI and former OpenAI board member Shivon Zilis as plaintiffs, claiming damages from the OpenAI-Microsoft partnership.
The legal battle began in March when Musk sued OpenAI’s founders Sam Altman and Greg Brockman, citing violations of the organization’s nonprofit principles. After withdrawing the state court filing in June, Musk refiled in federal court, expressing feelings of betrayal over what he sees as a departure from OpenAI’s founding mission.
Background and Key Relationships
Musk’s involvement with OpenAI ended in 2018 after unsuccessful attempts to gain majority control and leadership positions. Subsequently, Microsoft stepped in with investments totaling $13 billion, beginning with an initial $1 billion contribution that helped transform OpenAI into a for-profit entity.
The lawsuit alleges that Microsoft and OpenAI are engaging in anti-competitive practices by discouraging investors from funding competitors like xAI. It also claims the companies are sharing sensitive competitive information, disadvantaging xAI in the market.
New Defendants and Additional Claims
The updated lawsuit adds LinkedIn founder Reid Hoffman and Microsoft VP Dee Templeton as defendants, citing their board positions at both companies as evidence of anti-competitive coordination. Plaintiff Shivon Zilis, who also serves as a Neuralink director, previously raised concerns about OpenAI’s Microsoft dealings, viewing them as inconsistent with the organization’s original goals.
This legal action represents Musk’s latest move to challenge the growing influence of OpenAI and Microsoft in the artificial intelligence sector.
