Elon Musk Accuses OpenAI and Microsoft of Antitrust Violations

Elon Musk has filed an updated lawsuit against OpenAI and Microsoft, alleging attempts to monopolize the generative AI market and stifle competition, including his own company, xAI.

According to The Verge, Musk has expanded the lawsuit to include Microsoft, LinkedIn co-founder Reid Hoffman, and Microsoft Vice President Di Templeton, who previously served on OpenAI’s board of directors. The lawsuit accuses OpenAI and Microsoft of colluding to dominate the generative AI market, creating anti-competitive conditions that hinder other players in the industry.

Musk’s legal team claims that OpenAI CEO Sam Altman leveraged his influence to establish conditions that effectively merged OpenAI and Microsoft, strengthening their market position while creating barriers for competitors. The lawsuit highlights Microsoft’s significant investment in OpenAI—$14 billion since 2019—which granted it exclusive commercial rights to OpenAI’s technologies and a 49% stake in its for-profit division.

The rivalry between OpenAI and Musk’s xAI has intensified in the race for AI funding. OpenAI secured $6.6 billion in October, while xAI raised $6 billion in March. Musk argues that Microsoft’s deep financial ties with OpenAI have created an unfair competitive advantage, limiting opportunities for new market entrants.

Calling the situation "an unacceptable monopolization," Musk’s lawsuit demands an investigation into these alleged anti-competitive practices to ensure a fair and open AI market.