In a recent court filing, Elon Musk reinforced his long-standing criticism of OpenAI’s partnership with Microsoft, claiming that the U.S. Federal Trade Commission’s (FTC) concerns over the tech giant’s $13 billion investment in the artificial intelligence startup validate his assertions of anticompetitive behavior. Musk is seeking a court order to block OpenAI’s planned restructuring from a nonprofit to a for-profit entity, arguing that the FTC’s report—released on January 17—reveals Microsoft’s intentions to dominate the rapidly expanding AI sector and cloud computing market.
The FTC’s report, which was issued during the final days of the Biden administration, raised concerns about the competitive implications of Microsoft’s significant investment in OpenAI. Musk has taken this as confirmation of his claims that the partnership between the two companies threatens to undermine fair competition in the industry.
The report was issued shortly before former President Donald Trump, on the heels of his swearing-in ceremony on January 20, announced an ambitious initiative to invest billions of dollars in artificial intelligence infrastructure. This initiative, backed by OpenAI, SoftBank, and Oracle, is expected to launch under the name “Stargate,” further intensifying the competition in the AI landscape.
Despite these developments, neither OpenAI nor Microsoft has commented publicly on the issue.
The U.S. Justice Department, alongside the FTC, expressed support for Musk’s position in a joint filing on January 10. They emphasized concerns that overlapping board members between Microsoft and OpenAI could harm market competition. Musk’s legal team echoed these concerns in his latest filing, urging the federal court in Oakland to consider these issues as it evaluates his request for an injunction. A hearing on the injunction is scheduled for February 4.
This legal battle stems from a broader feud between Musk and OpenAI CEO Sam Altman, which has been ongoing for several months. The dispute dates back to when Musk and Altman co-founded OpenAI nearly a decade ago as a nonprofit entity, with the mission of developing generative AI for the public good. Musk, who departed OpenAI in 2018 to launch the rival startup xAI, has accused the company of abandoning its charitable origins after receiving substantial backing from Microsoft beginning in 2019.
Musk’s legal team argues that OpenAI’s shift to a for-profit structure could result in an unchecked monopoly, which would stifle competition and leave rivals powerless. Musk’s filings stress the urgency of the matter, warning that if OpenAI’s transformation is not halted, it may be too late to prevent the company from dominating the market.
In response, OpenAI has denied Musk’s allegations, providing evidence in court filings, including emails and messages, that suggest Musk initially supported a more traditional corporate structure for the organization.
The case, Musk v. Altman, is ongoing in the U.S. District Court for the Northern District of California (Oakland), under case number 4:24-cv-04722.
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