OpenAI has urged authorities in the United States to investigate Elon Musk and his associates over what it describes as “improper and anti-competitive behavior,” intensifying a legal dispute set to go to trial this month. The appeal was directed to officials in California and Delaware, just weeks before a closely watched courtroom showdown between the two sides.
The conflict stems from a lawsuit filed by Musk in 2024 against OpenAI and its CEO Sam Altman, accusing the organization of abandoning its original nonprofit mission as it transitions toward a for-profit structure. Musk, who co-founded OpenAI in 2015 before departing in 2018, has since launched rival AI venture xAI, which develops competing technologies including the Grok chatbot.
According to reporting by Reuters, OpenAI recently sent a formal letter to California Attorney General Rob Bonta and Delaware Attorney General Kathy Jennings, requesting a review of Musk’s actions. The company argued that the lawsuit seeks more than $100 billion in damages from its nonprofit foundation, a figure it says could effectively cripple its operations.
OpenAI executives have also raised concerns that the legal challenge could undermine broader efforts to ensure that artificial general intelligence, or AGI, is developed for the benefit of humanity. Chief Strategy Officer Jason Kwon stated in the letter that Musk’s claims suggest regulators may not have fully examined OpenAI’s restructuring plans and instead relied on assurances about its future conduct.
The dispute has already drawn attention due to claims that Musk attempted to involve Mark Zuckerberg in a consortium bid related to OpenAI, although the Meta Platforms chief ultimately declined to participate. These developments add another layer of complexity to a case that highlights growing tensions within the rapidly evolving AI industry.
A judge in Oakland, California has ruled that the case will proceed to a jury trial, expected to begin in April. The outcome could have far-reaching implications not only for the future structure of OpenAI but also for competition and governance in the global artificial intelligence sector.
