OpenAI Just Escalated Its Feud With Elon Musk, Alleging ‘Anticompetitive’ Plot

Before their upcoming trial, OpenAI plea’s to attorneys general to investigate Elon Musk.

BY MOSES JEANFRANCOIS, NEWS WRITER @MOSESJEANS

Elon Musk. Illustration: Inc; Photo: Getty Images, OpenAI

OpenAI has reportedly sent a formal letter to the attorneys general of California and Delaware alleging that Elon Musk and his associates should be investigated for “anti-competitive behavior.” 

Written by OpenAI strategy chief Jason Kwon, the letter alleges that Musk is undermining OpenAI through various “attacks” and “coordinating” with Meta and its CEO Mark Zuckerberg. 

According to CNBC, Kwon is urging the California and Delaware attorneys general to consider an investigation. This letter comes following a recent story from The New Yorker containing allegations of “sociopathic” behavior and lies by OpenAI’s CEO, Sam Altman. The letter’s plea is one in the long line of disputes between OpenAI and Musk, and comes just before a major trial between the two parties is set to commence.

In an August court filing, OpenAI said Musk attempted to recruit Zuckerberg to join a consortium bid for OpenAI early last year. Zuckerberg ultimately declined to participate. 

How Anthropic's Claude AI Became a Co-Founder

Musk and Altman co-founded OpenAI back in 2015 as a nonprofit. Musk departed in 2018 after unsuccessfully pushing to merge OpenAI with Tesla. He later founded rival startup xAI and sued OpenAI in 2024, claiming he was “manipulated” and “deceived” when OpenAI became a for-profit entity.  

Musk’s filings in the litigation, according to Kwon, “suggest that your offices did not thoroughly investigate OpenAI’s plan to recapitalize and merely relied on promises about what OpenAI will do in the future.” 

In January, OpenAI warned investors in a letter that Musk was making “deliberately outlandish, attention-grabbing claims” as his lawsuit goes to trial. The company said his remarks are not “grounded in reality” and are previous “harassment tactics.” 

© Inc.com