Elon Musk Accuses Microsoft and OpenAI of AI Market Manipulation in Expanded Lawsuit
Elon Musk says that Microsoft and OpenAI illegally tried to take over the AI market and put rivals out of business.
Elon Musk, CEO of Tesla, has stepped up his legal fight against OpenAI and Microsoft, one of its biggest backers. He is accusing them of antitrust violations and monopolistic behavior meant to control the generative AI market.
The new version of the case, filed Thursday in federal court in Oakland, California, says that the two tech giants pushed out competitors to create a monopoly in AI. Musk says that Microsoft and OpenAI, which he helped to create, used funding and exclusive partnerships to keep other companies from competing in the area of artificial intelligence, which is growing very quickly.
In a sharp critique, the complaint states:
“Never before has a corporation gone from tax-exempt charity to a $157 billion for-profit, market-paralyzing gorgon – and in just eight years.”
The lawsuit wants OpenAI’s licensing deal with Microsoft to end and wants Musk’s legal team to get back what they call “ill-gotten gains.”
Antitrust Allegations and Market Tactics
The lawsuit says that Microsoft and OpenAI have forced other businesses into deals that hurt competition. It also says that their exclusive licensing relationship is really a merger that isn’t being regulated properly. Musk’s lawyer, Marc Toberoff, said that Microsoft’s alleged actions hurt innovation in the industry, saying, “Microsoft’s anticompetitive practices have escalated.” Sunlight is the best way to kill germs.
OpenAI and Microsoft Respond
OpenAI said the lawsuit was “baseless and overreaching,” but Microsoft wouldn’t say anything about the current case. The complaint also named OpenAI’s CEO, Sam Altman, and says the company put making money ahead of its stated goal of helping people.
It is well known that Musk’s relationship with OpenAI is not good. Musk left the charity in 2018 because he didn’t like where it was going. He was one of its founders. Since then, OpenAI has grown into a business that makes money. Microsoft has given it billions of dollars, and it now heavily uses OpenAI’s technology in its own products.
Musk, who was recently given a government job by Donald Trump’s new administration, continues to speak out against the consolidation of the AI business.
Broader Implications for the AI Market
The generative AI field could be affected by this legal fight in a big way. Since OpenAI and Microsoft are being criticized for allegedly acting like monopolies, regulators are likely to pay more attention to partnerships in the AI business.
Musk’s case brings to light a growing argument about how to balance new ideas with fair market competition in one of the most important areas of technology.
