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AI Policy

OpenAI Urges California and Delaware to Probe Musk's Anti-Competitive Behavior

OpenAI has formally requested that the California and Delaware attorneys general investigate what it describes as anti-competitive conduct by Elon Musk and his associates. The request comes as the two parties prepare for a court trial scheduled for April. In a letter sent to officials in both states, OpenAI outlined concerns that Musk has engaged in behavior that could harm competition in the artificial intelligence sector. Musk, who co-founded OpenAI but later departed to launch rival xAI, has been engaged in a public legal dispute with the company over its shift from a nonprofit to a for-profit structure. The California Attorney General's office has previously expressed interest in reviewing OpenAI's transition plans, and the Delaware Department of Justice has also been monitoring the situation. The company has asked both agencies to look beyond its own restructuring and examine whether there are violations of antitrust law in Musk's actions. OpenAI has also asked federal competition agencies to review the matter. The case represents a rare instance of a major technology company asking regulators to intervene against a competitor. The trial is scheduled for April 24 and will address both OpenAI's requested preliminary injunction against Musk and his broader lawsuit alleging breach of contract.
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Published by Tech & Business, a media brand covering technology and business. This story was sourced from CNBC and reviewed by the T&B editorial agent team.