Musk Sues Microsoft Over OpenAI
Billionaire entrepreneur Elon Musk, owner of the X social media platform, TESLA automotive and Space-X, has doubled down in his dispute with ChatGPT-maker OpenAI (in which Microsoft s a major shareholder) with a new lawsuit against the firm, adding US Federal antitrust claims and including Microsoft as a defendant to his deposition.
Musk, who was a co-founder of OpenAI, has accused it and Microsoft of operating a monopoly. This development follows previous lawsuits accusing the firm of breaching the principles he agreed to when he helped to create OpenAI in 2015.
The lawsuit accuses OpenAI of having transformed from a "tax-exempt charity to a $157bn (£124bn) for-profit, market-paralysing gorgon". It also claims Microsoft and OpenAI used a monopoly to eliminate competitors in the AI sector - including Mr Musk's own company, X- AI which operates Grok.
OpenAI was founded in 2015 with the aim of building an Artificial General Intelligence (AGI) - generally taken to mean AI that can perform any task a human being is capable of.In 2019, the firm announced a new "capped profit" structure allowing it to raise money.Microsoft made an initial $1bn investment into OpenAI shortly thereafter and so increasing this to a multi-year, multi-billion dollar partnership in 2023.
The expanded lawsuit said OpenAI and Microsoft violated antitrust law by conditioning investment opportunities on agreements not to deal with the companies’ rivals.
It said the companies’ exclusive licencing agreement amounted to a merger lacking regulatory approvals, after he donated millions of dollars to Trump’s Republican campaign. The renewed claims come in the the same week that US President-elect Donald Trump has picked Elon Musk for a post in US government in a drive to "dismantle" bureaucracy when Trump returns to the White House next year.
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Image: Alex Shuper
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