Billionaire entrepreneur Elon Musk has expanded his legal battle against OpenAI, the creator of ChatGPT, by filing an amended lawsuit. The updated complaint includes federal antitrust allegations and names Microsoft, OpenAI’s largest financial backer, as a defendant.
The revised lawsuit, filed in a federal court in Oakland, California, accuses OpenAI and Microsoft of trying to monopolise the generative AI market while sidelining competitors. Musk claims that their actions violate antitrust laws and breach contracts by prioritising profits over public benefit.
“Never before has a corporation gone from tax-exempt charity to a $157 billion for-profit, market-paralysing gorgon — and in just eight years,” the lawsuit states. It further demands that OpenAI’s licensing agreements with Microsoft be voided and that any “ill-gotten” financial gains be forfeited.
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The lawsuit claims that Microsoft has engaged in anticompetitive practices by requiring exclusive investment deals that restrict partnerships with rival companies. The complaint also claims that the licensing agreement between Microsoft and OpenAI is essentially a merger that bypassed necessary regulatory approvals.
In response, OpenAI dismissed the new allegations, claiming that the latest lawsuit “is even more baseless and overreaching than the previous ones.”
Marc Toberoff, Musk’s attorney, criticised Microsoft’s practices, saying, “Microsoft’s anticompetitive practices have escalated.” “Sunlight is the best disinfectant.”
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Musk’s conflict with OpenAI is not new. He co-founded the AI company but has since become a vocal critic, alleging that OpenAI has drifted from its original mission. OpenAI, bolstered by billions of dollars from Microsoft, has become a leader in the generative AI space with products like ChatGPT.
Adding to the tension, Musk was recently accused by OpenAI of using the lawsuit as part of a campaign to harm the company for personal gain. In a previous court filing, OpenAI said Musk’s legal moves were part of an “increasingly blusterous campaign to harass OpenAI for his own competitive advantage.”