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Musk Files Amended Lawsuit Against OpenAI and Microsoft

Musk lawsuit

Elon Musk has filed an amended lawsuit against OpenAI, naming Microsoft, LinkedIn co-founder Reid Hoffman, and former OpenAI board member Dee Templeton as new defendants.

Musk accuses OpenAI and Microsoft of engaging in anticompetitive practices and attempting to monopolize the generative AI market. According to the lawsuit, OpenAI, with around 70% market share, constitutes or aims to constitute a monopoly.

The lawsuit also claims that Musk’s AI company, xAI, has suffered from the alleged preferential treatment between OpenAI and Microsoft, including unfair access to Microsoft’s infrastructure and compute resources.

Microsoft, which invested $13 billion in OpenAI in 2023 for a 49% stake in its profits, has allegedly enabled OpenAI to exploit its partnership to the detriment of competitors.

Musk’s amended complaint reiterates that OpenAI has abandoned its founding mission to develop safe and transparent AI for the benefit of humanity. He claims the organization has become a for-profit entity prioritizing financial gains over its original non-profit goals.

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