Elon Musk Escalates Fight With OpenAI & Microsoft With Revised Lawsuit

Billionaire entrepreneur Elon Musk has intensified his battle against OpenAI and Microsoft by filing a revised lawsuit on November 14. The legal move accuses the tech giants of monopolistic practices in the generative AI sector. Musk’s company, xAI, and Shivon Zilis, a Neuralink executive and former OpenAI board member, are among the plaintiffs challenging the alleged anticompetitive collaboration.

Elon Musk Revises Lawsuit Against OpenAI & Microsoft

The amended lawsuit filed by Elon Musk on November 14 claims that OpenAI and Microsoft have formed a “de facto merger,” leveraging their combined dominance to stifle competition in the AI industry. The complaint accuses the companies of recruiting AI talent through extravagant salaries, reportedly spending $1.5 billion for a workforce of 1,500.

Notably, reports indicate some OpenAI engineers earn up to $800,000 annually, including bonuses and stock options. Besides, the lawsuit also alleges that OpenAI discouraged investors from funding rival AI companies during a recent $6.6 billion fundraising round.

Previously, several reports claimed that this stipulation aimed to block competitors, including Musk’s xAI, from securing critical investments. Despite these claims, SoftBank, which contributed $500 million to OpenAI’s funding round, has stated it retains the freedom to back other AI ventures.

Meanwhile, lawyers for Musk argue the partnership between Microsoft and OpenAI creates a monopolistic environment, with the duo controlling nearly 70% of the generative AI market. The complaint suggests Microsoft has embedded itself deeply within OpenAI operations, blurring the lines between the two entities.

Escalating Rivalry With OpenAI

The amended lawsuit builds upon a series of disputes between Elon Musk and OpenAI. In March, Musk filed an initial suit against the AI firm and its founders, Sam Altman and Greg Brockman, accusing them of abandoning their nonprofit mission. Musk later withdrew the lawsuit without explanation but reignited the legal battle in August.

The new lawsuit also highlights OpenAI’s shift to a for-profit model, which Musk claims betrays its original mission to advance AI for the benefit of humanity. Musk, who co-founded OpenAI in 2015, has alleged he was misled into supporting the organization, which now prioritizes commercial interests over ethical development.

Notably, this report comes as Sam Altman’s OpenAI is gearing up to launch a new artificial intelligence tool named Operator. Besides, the AI firm has also pulled funding of $6.6 billion recently, which puts its valuation at $157 billion.