OpenAI urges state attorneys general to investigate Elon Musk ahead of $134 billion lawsuit trial

OpenAI Calls for Investigation Into Musk by California, Delaware

OpenAI urged the attorneys general of California and Delaware to investigate potential "improper and anti-competitive behavior" by Elon Musk in his efforts to block OpenAI from restructuring as a for-profit company. Jason Kwon, chief strategy officer at OpenAI, said in a Monday letter to both state officials that Musk "has repeatedly attempted - and failed - to wrest control of the nonprofit for his personal gain" in a bid to take control over the future of artificial intelligence. The letter comes weeks before Musk is set to face off in a trial against OpenAI and Microsoft Corp. over the billionaire's allegations that the startup betrayed its founding mission as a public charity by taking billions of dollars in backing from the software giant and making plans to convert to a for-profit business. Musk is seeking as much as $134 billion in damages from OpenAI and Microsoft. Kwon mentions the looming trial in his letter, saying that the case could undermine agreements that both states reached with OpenAI when it finalized its restructuring plan in October. "Mr. Musk's lawsuit is not just against OpenAI; it is about whether there is room in the industry for a company subject to the mission and structure outlined in the October agreements, or whether that ground must be ceded to Mr. Musk and his co-conspirators," Kwon said. OpenAI, the maker of ChatGPT, said when it announced its restructuring that it had given a 27% ownership stake to Microsoft in a transition that will keep the startup's nonprofit arm in control of its for-profit operations. California Attorney General Rob Bonta and Delaware Attorney General Kathy Jennings conducted reviews and ultimately decided not to object to the for-profit shift after OpenAI made certain commitments to both leaders about how the company's governance structure would function. A spokesperson for Bonta said his office is reviewing the letter. A representative for Jennings and a lawyer for Musk didn't immediately respond to requests for comment. The letter was reported earlier by CNBC. Musk co-founded OpenAI with Sam Altman and others in 2015, but the former business partners have become bitter foes in recent years. Musk left OpenAI's board in 2018 and in 2023 co-founded the artificial intelligence company xAI, which has become one of OpenAI's main rivals. Last year, OpenAI rejected Musk's unsolicited bid to acquire the assets of the nonprofit that controls the company for $97.4 billion.

OpenAI asks California, Delaware to investigate Musk's 'anti-competitive behavior' ahead of April trial

OpenAI on Monday sent a letter to the California and Delaware attorneys general, urging them to investigate "improper and anti-competitive behavior" by Elon Musk and his associates, as a high-profile trial nears between the two sides. In the letter, OpenAI strategy chief Jason Kwon alleged that Musk has been working to undermine OpenAI through various "attacks" on the company, including by "coordinating his efforts" with Meta CEO Mark Zuckerberg. Musk and OpenAI CEO Sam Altman co-founded the artificial intelligence lab in 2015 as a nonprofit, alongside several other researchers and executives. Musk left OpenAI in 2018, after trying to convince executives to merge it with Tesla. He later launched a competing company, xAI, and sued OpenAI in 2024, alleging that he was "assiduously manipulated" and "deceived" after the AI company explored converting to a for-profit entity. Jury selection for the trial is slated to begin on April 27, in the Northern District of California. Kwon said in the letter that Musk's behavior could inhibit OpenAI's efforts to bring about artificial general intelligence, or AGI, a broad term for an AI system that rivals or exceeds human intelligence. "These attacks are designed to take control of the future of AGI out of the hands of those who are legally obligated to pursue the mission of ensuring that AGI benefits all of humanity, and put it into the hands of competitors who lack mission-driven principles and spurn any responsibility for safety," Kwon wrote. OpenAI has previously expressed some related concerns about Musk's antics. In January, the company sent a letter to investors and banking partners warning that it expects Musk to make "deliberately outlandish, attention-grabbing claims" as his lawsuit against the AI lab heads to trial. OpenAI said in that letter that Musk will likely make comments about the AI company that are not "grounded in reality" and are "typical of the harassment tactics he's previously deployed."

In Letter, OpenAI Reportedly Says Elon Musk and Meta Are Coordinating 'Attacks' Against It

A recent New Yorker story is full of nasty allegations about OpenAI CEO Sam Altmanâ€"especially his supposed lying and “sociopath†behavior. But a new letter from OpenAI asks the states of California and Delaware to focus on something else entirely in the New Yorker story: alleged wrongdoing by Elon Musk. Another major OpenAI competitor, Meta, is also mentioned in the letter, which was reported by CNBC. Chris Lehane, OpenAI’s chief of global affairs claimed to CNBC that Musk and Meta CEO Mark Zuckerberg are “turning to conduct and approaches that we do think are really highly questionable and sharply worthy of investigation.†The letter was also reviewed by the Sacramento Bee, which notes that it accuses Musk and Zuckerberg of, in the Bee’s telling, “colluding as Musk sought to dig up incriminating information on Altman.†With the letter, OpenAI is apparently asking the attorneys general of California and Delaware to investigate Muskâ€"who on top of everything else is a rival AI executiveâ€"along with Meta, for “improper and anti-competitive behavior,†more specifically coordinated “attacks.†Said attacks could allegedly inhibit OpenAI’s ability to bring about artificial general intelligence (AGI). Musk, to refresh your memory, is suing OpenAI for $134 billion at last count. From the beginning, OpenAI has characterized the suit as part of a long smear campaign. In January of this year one statement called Musk’s suit “baseless and a part of his ongoing pattern of harassment.†The suit is progressing to a trial in the Northern District of California. On April 27, CNBC says jury selection will begin. CNBC notes that the letter to Delaware and California “referenced a recent report from The New Yorker†about Musk an his “intermediaries.†One relevant passage from the New Yorker story reads as follows: "Intermediaries directly connected to, and in at least one case compensated by, Musk have circulated dozens of pages of detailed opposition research about Altman. They reflect extensive surveillance, documenting shell companies associated with him, the personal contact information of close associates, and even interviews about a purported sex worker, conducted at gay bars. One of the Musk intermediaries claimed that Altman’s flights and the parties he attended were being tracked." “These attacks†Kwon writes in the letter, “are designed to take control of the future of AGI out of the hands of those who are legally obligated to pursue the mission of ensuring that AGI benefits all of humanity, and put it into the hands of competitors who lack mission-driven principles and spurn any responsibility for safety.†In a report late last month from Engadget, it emerged that last year, Zuckerberg texted Musk offering to help with his efforts to cut the federal budget with DOGE. Musk responded to with a heart emoji reaction, but then asked Zuckerberg is he was “open to the idea of bidding on the OpenAI IP with me and some others.†Zuckerberg then suggested the conversation be transferred to a phone call. Gizmodo reached out to xAI and Meta for comment about this letter. We will update this article if we hear back.

Elon Musk's $100 Billion Lawsuit Could Cripple OpenAI's Nonprofit Mission, ChatGPT Parent Asks California

On Monday, OpenAI asked California Attorney General Rob Bonta and Delaware Attorney General Kathy Jennings to investigate Elon Musk and his associates, alleging "improper and anti-competitive behavior." OpenAI Seeks Regulatory Scrutiny Of Musk In a letter sent to the attorney generals, OpenAI warned that Musk's lawsuit -- seeking more than $100 billion in damages -- could cripple its nonprofit foundation, Reuters reported. Musk, who co-founded ChatGPT-parent in 2015 and departed in 2018, sued OpenAI and its CEO, Sam Altman, in 2024. He claimed that the organization abandoned its original mission of developing artificial intelligence for the benefit of humanity as it transitions toward a for-profit structure. Musk now leads rival AI firm xAI, which competes directly with OpenAI with a platform Grok. Claims Of Competitive Motives OpenAI's chief strategy officer, Jason Kwon, argued in the letter that Musk's legal actions may be driven by competitive interests rather than principle. Musk's filings suggest that "your offices did not ⁠thoroughly investigate OpenAI's plan," Kwon wrote, adding that regulators may have "relied on promises about what OpenAI will do in the future." OpenAI did not immediately respond to Benzinga's request for comments. At the time, Meta spokesperson Andy Stone highlighted a portion of OpenAI's filing stating that neither Meta nor Zuckerberg signed Musk's letter of intent. Meta in 2024 contended that OpenAI should not repurpose assets created under its nonprofit structure for private profit. Trial Set To Begin In April A judge in Oakland, California, ruled in January that the case will proceed to a jury trial expected to begin this month. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo Courtesy: gguy on Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.