OpenAI Requests Investigation into Musk's Anticompetitive Behavior in California and Delaware

According to 1M AI News, OpenAI’s Chief Strategy Officer Jason Kwon sent letters on Monday to the Attorneys General of California and Delaware, urging both states to investigate Musk’s “improper and anticompetitive behavior” in blocking OpenAI’s transition to a for-profit company. Kwon stated in the letter that Musk has “repeatedly attempted to seize control of the nonprofit organization for personal gain, but has failed each time,” aiming to control the future direction of artificial intelligence. This letter comes weeks before Musk is set to face OpenAI and Microsoft in court. Musk accuses OpenAI of abandoning its founding mission as a public charity and plans to transition to a for-profit company after accepting billions of dollars in investment from Microsoft, seeking damages of up to $134 billion. Kwon warned both states that this lawsuit could undermine the agreement reached when OpenAI completed its transition last October. In this restructuring, OpenAI granted Microsoft a 27% equity stake while the nonprofit retained control over the for-profit operations. Kwon wrote, “Musk’s lawsuit is not just against OpenAI; it concerns whether there is still room in this industry for a company bound by mission and the October agreement, or if this territory must be surrendered to Musk and his co-conspirators.” A spokesperson for California Attorney General Rob Bonta stated that the letter is under review. Representatives for Delaware Attorney General Kathy Jennings and Musk’s lawyers did not immediately respond to requests for comment. Musk co-founded OpenAI with Altman and others in 2015, left the board in 2018, and founded the competitor xAI in 2023. Last year, OpenAI rejected Musk’s unsolicited offer to acquire its nonprofit assets for $97.4 billion.