U.S. antitrust regulators support Elon Musk's lawsuit against OpenAI and Microsoft

From Investing.com: 2025-01-10 17:51:10

U.S. antitrust enforcers supported Elon Musk’s lawsuit against OpenAI and Microsoft, citing potential anticompetitive practices. The FTC and DOJ provided legal analysis before a hearing in California. Microsoft declined to comment, while OpenAI called the lawsuit baseless. Musk’s lawyer sees regulators’ involvement as crucial.

The FTC is investigating AI partnerships, including between Microsoft and OpenAI, for anticompetitive behavior. Musk alleges OpenAI violated antitrust laws by restricting investors and sharing board members with Microsoft. OpenAI claims the board member issue is resolved, but regulators argue directors may retain sensitive information even after leaving.

Musk accuses OpenAI of organizing an investor boycott against rivals, a claim regulators find plausible even if the organizer is not a member. The FTC and DOJ argue that board members, including observers, can still possess competitive information and are subject to antitrust laws.



Read more at Investing.com: US supports Musk argument in OpenAI lawsuit By Reuters