Elon Musk Ramps Up Legal Battle Against OpenAI and Microsoft with Expanded Lawsuit and New Plaintiffs
ICARO Media Group
### Elon Musk Expands Lawsuit Against OpenAI and Microsoft
Elon Musk has intensified his legal battle against OpenAI by amending his lawsuit to include more anti-trust allegations, as well as naming Microsoft as a defendant. The revised lawsuit now also lists Musk’s own company, xAI, and Shivon Zilis, a former OpenAI board member and Neuralink director, as plaintiffs. Initially filed in March, Musk's lawsuit accuses OpenAI's founders, Sam Altman and Greg Brockman, of straying from the organization’s original non-profit mission through their collaboration with Microsoft. After briefly withdrawing the state court lawsuit in June, Musk refiled the case in federal court, maintaining that he was "betrayed by Mr. Altman and his accomplices."
Musk, a key early backer of OpenAI, claims that OpenAI's transformation into a more traditional for-profit entity with a non-profit component came at his expense. OpenAI countered these claims with old emails from 2015 to 2018, showing Musk's involvement in early discussions about transitioning to a for-profit model. These emails also reveal that Musk sought majority equity, control of the board, and the CEO role, and even proposed merging OpenAI with another of his ventures, Tesla. Musk parted ways with OpenAI in 2018, before Microsoft made its initial billion-dollar investment. Following Musk's departure, Microsoft has invested a total of $13 billion in OpenAI.
The amended lawsuit further asserts that OpenAI and Microsoft are attempting to stifle competition, specifically targeting xAI. It alleges that both companies have shared "competitively sensitive information" and restricted investors from funding potential rivals. LinkedIn co-founder Reid Hoffman and Microsoft VP Dee Templeton have also been named as defendants due to their involvement with both OpenAI and Microsoft boards.
Zilis, who voiced concerns over the OpenAI-Microsoft deals, has also joined the lawsuit. Musk maintains that these exclusive dealings have directly harmed his company, xAI, and has expanded his legal efforts to address what he perceives as monopolistic practices by OpenAI and Microsoft.