Elon Musk has expanded his legal battle against OpenAI by updating his lawsuit to include antitrust claims against Microsoft. The revised complaint, filed on Thursday, accuses both companies of working together to “monopolize the generative AI market.” In this amended filing, Musk named Microsoft as a new defendant, along with LinkedIn co-founder Reid Hoffman and Microsoft Vice President Dee Templeton, who previously served on OpenAI’s board.
Microsoft has poured $14 billion into OpenAI since 2019 and holds exclusive rights to commercially license OpenAI’s technology, as well as a 49% stake in its for-profit subsidiary. According to Musk’s legal team, former OpenAI CEO Sam Altman allegedly engaged in “rampant self-dealing” to forge what they describe as a “de facto merger” between OpenAI and Microsoft. Musk claims this arrangement has fostered anticompetitive behavior.
The lawsuit further alleges that OpenAI and Microsoft are actively seeking to stifle competition in the AI sector. Musk’s legal team accuses the companies of sharing “competitively sensitive information” and pressuring their investors not to fund rival ventures, including Musk’s own AI startup, xAI. This legal confrontation comes as both companies are fiercely competing for dominance in the rapidly growing AI industry. OpenAI recently secured $6.6 billion in funding in October to advance its AI technologies, while xAI raised $6 billion in March to fast-track its development of cutting-edge technologies.
Adding to the revised lawsuit, xAI has been named as a new plaintiff, joining former OpenAI board member Shivon Zilis. Zilis, an executive at Musk’s Neuralink company and the mother of three of Musk’s 12 children, is now directly involved in the case.
Requests for comments from OpenAI and Microsoft on these new allegations remain unanswered at this time.
Musk’s history with OpenAI dates back to its founding in 2015, which he co-established alongside Sam Altman and Greg Brockman, both of whom are also defendants in this lawsuit. However, Musk left OpenAI in 2018. Earlier this year, Musk filed a lawsuit in March claiming OpenAI had deviated from its original mission to develop AI for the betterment of humanity. That suit also alleged that OpenAI’s partnership with Microsoft turned the nonprofit into a “closed-source de facto subsidiary” driven by profit motives. Musk dropped the lawsuit in June without explanation.
In August, Musk reopened the case against OpenAI, reiterating many of the same claims. OpenAI has consistently sought to dismiss Musk’s accusations, dismissing the lawsuits as publicity stunts. The company has described Musk’s actions as part of an “increasingly blusterous campaign” aimed at gaining a competitive edge for his ventures.
Since reigniting the legal proceedings, Musk has reportedly been promised an advisory role in President-elect Donald Trump’s administration. This position could provide him with greater influence over policies related to artificial intelligence, potentially benefitting xAI in its efforts to shape the future of the industry.