OpenAI has formally requested state investigations into Elon Musk, escalating a legal battle that pits two of the world's most powerful AI labs against each other just weeks before a high-stakes trial.
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OpenAI seeks probe into Musk's 'anti-competitive' behavior ahead of trial
OpenAI asked attorneys general in California and Delaware on Monday to investigate what it calls Elon Musk’s “irregular and anti-competitive behavior,” escalating a feud between the two AI pioneers. The move comes as a lawsuit filed by Musk against the ChatGPT-maker is set for a trial, with jury selection scheduled to begin April 27.
"These attacks are intended to seize control of the future of AGI from those who are legally bound to ensure it benefits all of humanity and transfer it to competitors who lack mission-driven principles and refuse to assume safety responsibilities," Jason Kwon, OpenAI's chief strategy officer, wrote in the letter.
Musk, a co-founder of OpenAI in 2015 when it was a non-profit, left the organization in 2018 after a failed attempt to merge it with Tesla. He later founded the competing lab xAI in 2023 and sued OpenAI this year, alleging he was deceived during the company's transition to a for-profit entity. OpenAI alleges Musk has engaged in a campaign to weaken the company, including "coordinating actions" with Meta CEO Mark Zuckerberg.
The escalating legal fight introduces significant uncertainty for the multi-trillion dollar AI sector, potentially triggering wider regulatory scrutiny of the industry's key players. The trial's outcome could impact the competitive landscape, affecting partnerships like OpenAI's with Microsoft and influencing investor sentiment toward both public AI-related stocks and private market valuations for companies like xAI.
A Battle for Control
The core of the dispute is a fundamental disagreement over the path to developing artificial general intelligence, or AGI. In his letter, Kwon framed Musk's actions as a direct threat to OpenAI's chartered mission to build safe and broadly beneficial AGI. The letter alleges a pattern of behavior from Musk aimed at undermining OpenAI's leadership and technical progress.
This is not the first time OpenAI has warned of Musk's tactics. In a January letter to investors, the company preemptively cautioned that Musk would likely make "deliberately exaggerated, attention-seeking statements" that are "not consistent with reality" as part of a "harassment strategy" leading up to the trial.
Broader Market Implications
The conflict between two of AI's most prominent figures highlights the immense financial and strategic stakes in the race to dominate the next generation of technology. While OpenAI has a deep, multi-billion dollar partnership with Microsoft, Musk's xAI is building its own models and has been integrated into his social media platform X. The legal proceedings could expose internal details about the governance, safety protocols, and commercial strategies at both organizations, providing rivals and regulators with a rare look inside the opaque world of frontier AI development. The outcome could set a precedent for how disputes over the future of AI are resolved, with significant consequences for which entities ultimately control this powerful technology.
This article is for informational purposes only and does not constitute investment advice.
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