Elon Musk Expands Lawsuit Against OpenAI and Microsoft

By Mike Scarcella

(Reuters) – Billionaire entrepreneur Elon Musk has expanded his lawsuit against OpenAI, the maker of ChatGPT, by adding federal antitrust claims and including Microsoft's (NASDAQ:MSFT) involvement as a defendant.

The amended lawsuit, filed on Thursday night in federal court in Oakland, California, alleges that Microsoft and OpenAI illegally sought to monopolize the generative artificial intelligence market, sidelining competitors in the process.

Similar to Musk's original complaint from August, it accuses OpenAI and its CEO, Samuel Altman, of violating contract provisions by prioritizing profits over public good in their pursuit to advance AI.

> “Never before has a corporation gone from tax-exempt charity to a $157 billion for-profit, market-paralyzing gorgon — and in just eight years,” the complaint stated. The lawsuit seeks to void OpenAI's licensing agreement with Microsoft and demands they divest their “ill-gotten” gains.

OpenAI responded, stating that the latest lawsuit is "even more baseless and overreaching than the previous ones." Microsoft has chosen not to comment at this time.

Musk's attorney, Marc Toberoff, expressed concerns about Microsoft's anticompetitive practices, stating, "Sunlight is the best disinfectant."

Musk has long opposed OpenAI, a startup he co-founded that has become a leader in generative AI, thanks to significant funding from Microsoft.

Recently, Musk gained recognition as a key figure in U.S. President-elect Donald Trump's administration, having been appointed to a new role aimed at reducing government waste after donating millions to Trump’s campaign.

The expanded lawsuit claims that OpenAI and Microsoft violated antitrust laws by conditioning investment opportunities on agreements not to collaborate with the companies’ rivals. It further argues that their exclusive licensing agreement represents an unapproved merger.

In a prior court filing, OpenAI accused Musk of using the lawsuit to create a competitive advantage, labeling it as part of an "increasingly blusterous campaign to harass OpenAI."