Regulators weigh in on Musk’s lawsuit against OpenAI and Microsoft
A legal battle over alleged anti-competitive practices in the AI industry.
US antitrust regulators provided legal insights on Elon Musk’s lawsuit against OpenAI and Microsoft, alleging anticompetitive practices. While not taking a formal stance, the Federal Trade Commission (FTC) and Department of Justice (DOJ) highlighted key legal doctrines supporting Musk’s claims ahead of a court hearing in Oakland, California. Musk, a co-founder of OpenAI and now leading AI startup xAI, accuses OpenAI of enforcing restrictive agreements and sharing board members with Microsoft to stifle competition.
The lawsuit also claims OpenAI orchestrated an investor boycott against rivals. Regulators noted such boycotts are legally actionable, even if the alleged organiser isn’t directly involved. OpenAI has denied these allegations, labelling them baseless harassment. Meanwhile, the FTC is conducting a broader probe into AI partnerships, including those between Microsoft and OpenAI, to assess potential antitrust violations.
Microsoft declined to comment on the case, while OpenAI pointed to prior court filings refuting Musk’s claims. However, the FTC and DOJ stressed that even former board members, like Reid Hoffman, could retain sensitive competitive information, reinforcing Musk’s concerns about anticompetitive practices.
Musk’s legal team sees the regulators’ involvement as validation of the seriousness of the case, underscoring the heightened scrutiny around AI collaborations and their impact on competition.