OpenAI Urges California and Delaware AGs to Investigate Elon Musk for Anti-Competitive Conduct

OpenAI Calls for Probe into Musk's Alleged Attempts to Control AI Lab

In a significant escalation of its ongoing legal battle, OpenAI has formally petitioned the Attorneys General of California and Delaware to launch an investigation into allegations of "improper and anti-competitive" conduct by Elon Musk. The AI research lab detailed these concerns in a formal letter dispatched to the state officials, asserting that Musk had "repeatedly attempted to seize control" of the non-profit organization for his personal benefit, and that these efforts had been unsuccessful. The underlying motive, according to OpenAI, was to gain dominion over the future direction of artificial intelligence development.

This development arrives just weeks ahead of a critical legal confrontation slated between Musk, OpenAI, and Microsoft. Musk has filed a lawsuit accusing the AI pioneer of abandoning its foundational mission as a public charity, particularly after securing substantial investments from Microsoft and initiating a transition towards a for-profit structure. He is pursuing damages estimated at up to $134 billion from both OpenAI and Microsoft.

Lawsuit's Wider Implications for the AI Landscape

Jason Kwon, OpenAI's Chief Strategy Officer, highlighted in his correspondence to the state attorneys general that Musk's lawsuit could potentially undermine the restructuring agreement that OpenAI finalized with the two states in October. He argued that the case transcends a dispute solely between Musk and OpenAI, posing a broader question about the future of the AI field. Kwon questioned whether there remains space for organizations committed to their original mission and governance structure, or if the domain must inevitably succumb to the influence of specific individuals like Musk and his collaborators.

As the developer of ChatGPT, OpenAI announced its restructuring plan, which included granting Microsoft a 27% equity stake while affirming that its non-profit division would continue to oversee the for-profit business operations. This restructuring had previously undergone scrutiny by the Attorneys General of California and Delaware. Their non-objection to the transition was contingent upon OpenAI providing several assurances pertaining to its corporate governance framework.

Historical Context of the Musk-OpenAI Rivalry

The genesis of OpenAI traces back to 2015, when Musk co-founded the organization alongside Sam Altman and others. However, the relationship has significantly soured in recent years, transforming them into adversaries. Musk eventually departed OpenAI's board of directors in 2018. In 2023, he established xAI, a new artificial intelligence company that has rapidly emerged as a primary competitor to OpenAI. Furthermore, OpenAI reportedly rejected a $97.4 billion offer from Musk last year to acquire the assets of its non-profit parent entity, underscoring the deep-seated disagreements and divergent strategic visions between the two parties.

The office of California Attorney General Rob Bonta has indicated that it is reviewing the letter from OpenAI. Representatives for Delaware Attorney General Kathy Jennings and Musk's legal team have not yet provided immediate comment.