Elon Musk implicates Microsoft and xAI in lawsuit against OpenAI

Elon Musk implicates Microsoft and xAI in lawsuit against OpenAI

Elon Musk is now also naming Microsoft as a defendant in the lawsuit against OpenAI. The case deals with OpenAI’s commercial desires that, according to Musk, prevent it from having nonprofit interests.

Elon Musk’s complaint against OpenAI has been amended. Microsoft, LinkedIn co-founder Reid Hoffman, and former OpenAI board member Dee Templeton are among the new defendants.

OpenAI and inseparable partner Microsoft

Templeton served on the board as an untenured member of Microsoft, where she works as the VP of Partnerships and Operations. She resigned her seat on the board during the summer of 2024.

The two parties are closely linked by Microsoft’s huge financial contributions to OpenAI. Therefore, it is not remarkable that Musk wants to hear both sides of the duo in the lawsuit. In the complaint, his lawyers clarify that the partnership provides an unfair competitive advantage. After all, OpenAI can use Microsoft’s extensive infrastructure.

New plaintiffs

New plaintiffs are also popping up in the amendments. Also on that side is an old acquaintance of OpenAI’s board of directors: Shivon Zilis. Zilis has a personal relationship with Musk; together they have three children.

In the list of plaintiffs, Musk is keeping it remarkably close to home. In addition to Zilis, his own AI company xAI is also among them. This company develops the Grok models, which compete with OpenAI’s GPT models.

Another argument the lawyers have is the conspicuous demands OpenAI imposes on investors. About that, it came to light that the AI developer explicitly asks not to invest in competing AI companies. Since xAI is a competitor, the company experiences a direct negative impact.

Read also: OpenAI secures record funding with condition: no backing for Anthropic