Elon Musk Intensifies Legal Battle Against OpenAI and Microsoft, Alleging Monopolistic Practices
Highlights:
- Elon Musk files a revised lawsuit accusing OpenAI and Microsoft of monopolistic behavior.
- Claims OpenAI abandoned its nonprofit mission to prioritize commercial interests.
- Alleges the two companies dominate nearly 70% of the generative AI market.
Billionaire entrepreneur Elon Musk has escalated his conflict with OpenAI and Microsoft by filing a revised lawsuit on November 14. The lawsuit accuses the two tech giants of monopolistic practices and anti-competitive collaboration in the generative AI sector. Musk’s AI company, xAI, and Shivon Zilis, a Neuralink executive and former OpenAI board member, are listed as plaintiffs in the case.
Musk Revises Lawsuit Against OpenAI and Microsoft
The amended legal filing claims that OpenAI and Microsoft have created a “de facto merger,” consolidating their influence to suppress competition in the AI industry. The lawsuit also alleges the companies have spent $1.5 billion on hiring top AI talent, offering salaries and benefits reaching up to $800,000 annually.
Additionally, Musk accuses OpenAI of discouraging investors from funding rival AI companies during its recent $6.6 billion fundraising round. Despite this, SoftBank, a contributor to OpenAI’s funding, has publicly stated it remains free to invest in other AI ventures.
Musk’s legal team contends that the partnership between OpenAI and Microsoft has fostered a monopolistic environment, with the two companies collectively controlling about 70% of the generative AI market. The lawsuit also claims Microsoft has integrated itself so deeply into OpenAI’s operations that the distinction between the two entities has become blurred.
Renewed Dispute with OpenAI
This revised lawsuit marks the latest chapter in Musk’s ongoing conflict with OpenAI. Earlier this year, he filed an initial lawsuit accusing the AI firm’s founders, Sam Altman and Greg Brockman, of betraying OpenAI’s nonprofit mission. Though Musk withdrew that suit, he reignited the legal challenge in August, building upon allegations that OpenAI prioritizes profit over its original ethical objectives.
Musk, a co-founder of OpenAI in 2015, has repeatedly claimed he was misled into supporting the organization. He argues that its transition to a for-profit model undermines its mission to develop AI for the benefit of humanity.
This legal development comes as OpenAI prepares to launch a new AI tool, “Operator,” and after its recent $6.6 billion fundraising round, which valued the company at $157 billion. Musk’s lawsuit could further intensify the growing rivalry between his xAI initiative and OpenAI.
