Elon Musk's Legal Showdown: Battling OpenAI and Microsoft Over AI Monopolization and Militarization
1min read Recently, Elon Musk filed a comprehensive 107-page lawsuit in the U.S. District Court for the Northern District of California against OpenAI and its CEO, Sam Altman. This lawsuit expands on a previous filing from August, where Musk accused OpenAI of transforming into a profit-driven entity, contrary to its original non-profit intentions.
Musk's concerns further escalated as he added new antitrust allegations in the latest lawsuit, including Microsoft and California Attorney General Rob Bonta among the defendants. According to Musk, both Microsoft and OpenAI are not content with their near-monopolistic position in generative AI. He claims they pressure investors to avoid funding competitors like his AI venture, xAI, which was founded in 2023 and valued at $50 billion after raising $5 billion in its latest funding round.
The lawsuit doesn't stop at financial monopolization allegations. Musk also accuses OpenAI of monopolizing technical talent, with plans to spend $1.5 billion to hire 1,500 employees. In a high-tech industry where skilled professionals are scarce, Musk views this as a serious threat.
Furthermore, Musk charges OpenAI with removing stipulations against using AI technology for military purposes and partnering with the U.S. Department of Defense. He argues this move could lead to militarization of AI, posing significant risks.
Musk's concerns about OpenAI's dominance are rooted in their shared history. In 2015, he co-founded OpenAI with Altman and others to counter tech giants like Google. Previously disclosed emails revealed Musk's initial willingness to commit $1 billion to OpenAI.
However, amidst internal power dynamics, Altman secured the CEO position that Musk aspired to. Altman's stance against public release of OpenAI's advanced AI technology further fueled Musk's discontent, leading to his resignation from the board in 2018, although he pledged advisory support having invested $100 million previously.
In 2019, OpenAI's establishment of a for-profit subsidiary undercut its non-profit roots. Reports suggest upcoming structural changes reinforcing this shift, a move Musk argues turns OpenAI into what he described as a "de facto closed-source subsidiary of Microsoft."
Musk's suit largely targets Altman's alleged duplicity, aiming more at reputational damage than legal consequences. By challenging Altman publicly, Musk possibly seeks to disrupt OpenAI's financing efforts, carving out space for himself in the AI sector.
OpenAI has rebutted Musk's claims, while Microsoft, also implicated in the lawsuit, has yet to respond.