Elon Musk has updated his lawsuit against OpenAI, accusing the company and its key partner Microsoft of attempting to monopolize the generative AI market. The amended lawsuit claims they are “actively attempting to eliminate competitors,” including Musk’s xAI.
According to The Verge, the updated complaint introduces Microsoft as a new defendant, alongside LinkedIn co-founder Reid Hoffman and Microsoft Vice President Dee Templeton, who previously served on OpenAI’s board. Musk alleges that OpenAI and Microsoft’s collaboration created unfair conditions, hindering competition in the rapidly evolving AI industry.
Funding Rivalry and Antitrust Concerns
Both OpenAI and xAI are actively competing for funding to strengthen their presence in the AI market. OpenAI raised $6.6 billion in October to develop advanced AI models, while xAI secured $6 billion in March. Since 2019, Microsoft has invested $14 billion in OpenAI, acquiring exclusive commercialization rights and a 49% stake in its commercial division.
Musk’s legal team claims that OpenAI CEO Sam Altman misused his position for personal gain, resulting in a “de facto merger” between OpenAI and Microsoft, notes NIX Solutions. This partnership allegedly transformed OpenAI into a profit-driven entity, diverging from its original mission of benefiting humanity. Musk, who co-founded OpenAI in 2015 but left in 2018, asserts that the alliance resembles a private subsidiary relationship that stifles competition.
Legal Battle and Future Updates
The lawsuit, first filed in March and briefly withdrawn in June, accuses OpenAI of shifting away from its foundational principles. OpenAI has dismissed the lawsuit, calling it a “public relations stunt” and an effort to harass the company for competitive advantage.
In a notable addition, Shivon Zilis, a former OpenAI board member and CEO of Musk’s Neuralink, has joined the case as a plaintiff. Zilis, who has personal ties to Musk, adds another layer of complexity to the ongoing legal proceedings.
Journalists have reached out to OpenAI and Microsoft for comments on the case’s latest developments. While the outcome remains uncertain, we’ll keep you updated on further integrations and announcements.