OpenAI Calls on California and Delaware to Investigate Potential Unfair Competition Against Musk

MaticHoleFiller · 2026-04-09T11:21:48+00:00

OpenAI strongly opposes Elon Musk's attempt to prevent its reorganization into a for-profit company and calls on the attorneys general of California and Delaware to investigate its potential anti-competitive behavior. OpenAI states that Musk is trying to control the company and seek personal gain, and will confront him in court, seeking $134 billion in damages.

MaticHoleFiller

2026-04-09 11:21:48

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Regarding Elon Musk’s opposition to OpenAI’s restructuring into a for-profit company, OpenAI urges the attorneys general of California and Delaware to investigate potential “unfair and anti-competitive conduct” involved.

On Monday, OpenAI’s Chief Strategy Officer Jason Kwon stated in a letter to the two state officials that Musk “has repeatedly attempted to seize control of this nonprofit organization, despite failures, in an effort to pursue personal interests,” aiming to control the future of artificial intelligence.

Weeks later, Musk will face off in court against OpenAI and Microsoft, accusing the AI company of betraying its founding mission as a public charity, accepting billions of dollars in investments from tech giant Microsoft, and planning to transition into a for-profit enterprise. Musk is seeking up to $134 billion in damages from OpenAI and Microsoft.

Kwon mentioned the upcoming lawsuit in the letter, stating that it could undermine the agreements reached between the two states and OpenAI. At that time, OpenAI finalized its restructuring plan in October.

Kwon said, “Musk’s lawsuit is not just about OpenAI; it concerns whether there is still room in the industry for a company bound by the mission and structure outlined in the October agreement, or whether this territory must be ceded to Musk and his co-conspirators.”

When announcing the restructuring, OpenAI stated that it had transferred 27% of its ownership shares to Microsoft, a transition that would allow the company’s nonprofit division to continue controlling its for-profit operations.

California Attorney General Rob Bonta and Delaware Attorney General Kathy Jennings reviewed the matter and ultimately decided not to oppose OpenAI’s move toward profitability, with the company making certain commitments regarding its governance structure to the two attorneys general.

Bonta’s spokesperson said his office is reviewing the letter. Representatives for Jennings and Musk’s lawyers did not immediately respond to requests for comment.

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