The lawsuit cites the sharing of sensitive information and mentions dissuading investors from supporting xAI.
Tesla CEO Elon Musk has just intensified his legal offensive against OpenAI and Microsoft. The billionaire, who often tops Bloomberg’s list of the world’s richest people, has updated his lawsuit. The amendment, filed Thursday by Musk’s lawyers in a San Francisco court, adds new allegations of anti-competitive practices by the company behind ChatGPT and names Microsoft as a new defendant.
The updated lawsuit alleges that OpenAI and Microsoft monopolize generative artificial intelligence systems. It claims that, from this dominant position, both companies are “actively trying to eliminate competitors, such as xAI,” by sharing sensitive information and discouraging investors. xAI is Musk’s AI company, with products like the Grok chatbot integrated into X.
A “De Facto Merger” Between OpenAI and Microsoft
Musk’s lawyers argue that OpenAI, led by Sam Altman, unfairly benefits from Microsoft’s infrastructure and expertise in AI models. They describe this dynamic as a “de facto merger” and contend that xAI has been disadvantaged “in terms of Microsoft’s accumulation of assets, equity, and dominance over OpenAI.”
An OpenAI spokesperson told The Wall Street Journal: “Elon’s third attempt in less than a year to reframe his claims is even more baseless and overreaching than the previous ones.” Musk first sued OpenAI and Altman in February. Four months later, he dismissed the case without prejudice, meaning he could refile.
And here’s what happened. Musk’s legal team returned to court in June to attempt to derail the multibillion-dollar deal between OpenAI and Microsoft, accusing Altman of intentionally misleading him. Now, the billionaire has filed the amendment while solidifying his role as one of President-elect Donald Trump’s closest allies at the helm of the newly established Department of Government Efficiency (DOGE).
The connection between OpenAI and Microsoft dates to 2019, when Microsoft invested $1 billion and became OpenAI’s preferred partner to commercialize its products. At the time, OpenAI had promising technology but lacked the money and computing power to train and run its AI models. Microsoft provided both, thanks to Azure and its financial resources. That investment has since grown to $13 billion.
Still, OpenAI is reportedly seeking more computing power than Microsoft can—or will—provide. Tensions between the companies are growing, with OpenAI exploring other investment sources and developing its own technology infrastructure. Time will tell how Musk’s legal actions affect the relationship between these companies.
Image | Daniel Oberhaus | Village Global
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