Elon Musk expands lawsuit against OpenAI and Microsoft, accusing them of operating a monopoly in the AI sector. He claims that OpenAI transformed from a tax-exempt charity to a $157 billion for-profit entity after receiving investments from Microsoft and other companies.
According to the amended legal complaint filed on Thursday, Musk accuses OpenAI and Microsoft of operating a monopoly in the AI sector. The lawsuit also names LinkedIn co-founder Reid Hoffman as a defendant.
Musk’s initial lawsuit was filed in March and accused OpenAI of breaching the principles he agreed to when he helped found it in 2015. He claimed that the agreement with Microsoft had transformed OpenAI into “a closed-source de facto subsidiary” of the PC giant.
OpenAI has denied these claims, stating that Musk had previously backed the idea of a for-profit structure and had at one point wanted “absolute control” of the company.
The lawsuit alleges that OpenAI was founded as a tax-exempt charity in 2015 with the aim of building an artificial general intelligence (AGI). However, it claims that the firm transformed into a $157bn (£124bn) for-profit entity after receiving investments from Microsoft and other companies.
Musk’s amended complaint also accuses boss Sam Altman of “rampant self-dealing” and alleges that OpenAI used its monopoly power to eliminate competitors in the AI sector, including Musk’s own company, xAI.
Key Points
-
The lawsuit was filed in a California court in August and has been amended to include Microsoft as a defendant.
-
OpenAI was founded in 2015 with the aim of building an artificial general intelligence (AGI).
-
In 2019, the firm announced a new “capped profit” structure allowing it to raise money. Microsoft made an initial $1bn investment into OpenAI shortly thereafter and increased this to a multi-year, multi-billion dollar partnership in 2023.
-
The lawsuit also accuses boss Sam Altman – a named defendant in the lawsuit – of “rampant self-dealing”.
-
Mr Musk’s initial legal action filed in March argued that the agreement had transformed OpenAI into “a closed-source de facto subsidiary” of Microsoft.
Reactions
-
An OpenAI spokesperson said Mr Musk’s refreshed complaint was “baseless” and that previous emails sent by Mr Musk, which it shared publicly in response to his original lawsuit, “speak for themselves”.
-
Microsoft declined to comment on the lawsuit.
-
The BBC has approached Reid Hoffman for a response.
