A clash of ideals or a contrived campaign to regain market share?
Elon Musk’s tumultuous relationship with OpenAI, the AI research organization he co-founded in 2015 with current CEO Sam Altman allegedly for charitable purposes, revived his suit against company after dropping it earlier this year. The Nov. 14 complaint has been amended to add claims of antitrust violations and a new defendant, OpenAI-backer Microsoft Inc. (Musk, et al. v. Altman, et al., No. 4:24-cv-04722-YGR, N.D. Calif.).
Musk initially sued OpenAI in 2023 alleging the company had deviated from its original mission of developing AI to benefit humanity. The lawsuit claimed that OpenAI had transformed into a profit-driven entity, prioritizing financial gain over open research. Musk claims, among other things, that OpenAI abandoned its charitable mission when it accepted significant funding from Microsoft in 2019. But Musk dropped the suit earlier this year for reasons left to speculation. Some guess it was to make room on Musk’s plate for other ambitious projects, from satisfying demand for electric cars to inhabiting Mars to spending more time tweeting and campaigning for now president-elect Donald Trump. In March 2023 he also launched his own artificial intelligence platform called, xAI whose stated mission is to understand “the true nature of the universe.”
Peace between Musk and OpenAI co-founders CEO Altman and President Greg Brockman didn’t last long, however. His new complaint claims OpenAI is breaking an alleged agreement — which OpenAI says does not exist — to conduct its operation for “the good of humanity.” OpenAI is putting corporate interests ahead of public accountability, Musk claims, saying the company’s practices are commercially exploitative.
The amended complaint lodges 26 counts, from violations of the Sherman Act, Cartwright Act, and the Clayton Act, to self-dealing and breach of fiduciary duties, to violations of the Racketeering Influenced and Corrupt Organizations Act. OpenAI and Microsoft have teamed up to crush competitors, the suit maintains.
Valued at $90 billion, OpenAI calls Musk’s suit a “contrived” move to take advantage of the company’s success. The company also says it had no founding agreement or contract with Musk.
Musk’s role in the Trump administration as co-lead of the planned Department of Government Efficiency has prompted questions about whether he would use his influence to pursue rivals. This was raised in the context of the resurrected suit against Altman, OpenAI, Microsoft, and others, since it was filed just days after the November 2024 election. When asked by the New York Times about this, Altman reportedly said, “It would be profoundly un-American to use political power, to the degree that Elon has it, to hurt your competitors and advantage your own businesses. And I don’t think people would tolerate that. I don’t think Elon would do it.”
