OpenAI presses for investigation of Musk 'anti-competitive behavior' ahead of trial
OpenAI presses for investigation of Musk ‘anti-competitive behavior’ ahead of trial
OpenAI is urging the attorneys general of California and Delaware to investigate Elon Musk’s “improper and anti-competitive behavior” targeting the AI firm’s corporate restructuring, as the Tesla CEO’s case against the company is set to head to trial this month.
In a letter to California Attorney General Rob Bonta (D) and Delaware Attorney General Kathy Jennings (D) on Monday, the ChatGPT maker called for a probe into Musk’s efforts to “undermine” the restructuring that the company negotiated with the pair last year.
“We are writing to advise your offices of the ongoing and persistent efforts by Elon Musk to undermine the agreements we reached as part of the recapitalization to ensure that OpenAI continues to advance its mission,” wrote Jason Kwon, OpenAI’s chief strategy officer.
OpenAI, which was founded as a nonprofit in 2015 and later added a for-profit arm in 2019, altered its structure in October to convert the for-profit entity into a public benefit corporation that remained under control of the nonprofit.
It initially sought to shift to a fully for-profit structure and remove the nonprofit’s control but walked back the plan last May, citing discussions with Bonta’s and Jennings’s offices.
As reports circulated about the restructuring push in 2024, Musk filed a lawsuit against OpenAI, its CEO Sam Altman and co-founder Greg Brockman, alleging they manipulated the billionaire into co-founding and financially backing the venture before abandoning its original nonprofit mission. Musk founded his own AI firm, xAI, in 2023.
In early 2025, Musk also launched a $97.4 billion bid to buy OpenAI’s nonprofit, which he promised to withdraw if the company halted its conversion plans. OpenAI rejected the offer.
“We bring this to your attention because these attacks on OpenAI are premised on the unique structure, mission and history that were implemented through your October Agreements, and will undermine the very successes that your offices achieved,” Kwon said in Monday’s letter.
“These attacks are designed to take control of the future of [artificial general intelligence] out of the hands of those who are legally obligated to pursue the mission of ensuring that AGI benefits all of humanity, and put it into the hands of competitors who lack mission-driven principles and spurn any responsibility for safety,” he added.
While U.S. District Judge Yvonne Gonzalez Rogers rejected Musk’s efforts to block the restructuring, she has allowed the case against OpenAI to proceed to a trial. It is set to get underway with jury selection on April 27.
Kwon argued that the case, which seeks $100 billion in damages from OpenAI’s nonprofit, would “cripple the nonprofit” while “enriching [Musk] with funds that are intended to serve the public.” He also warned that Musk will use the trial to attack OpenAI’s discussions with Bonta and Jennings on its restructuring.
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