U.S. antitrust regulators have weighed in on Elon Musk’s lawsuit seeking to block OpenAI’s transition into a public company, reinforcing his claims that OpenAI and Microsoft engaged in anticompetitive practices. Although the Federal Trade Commission (FTC) and the Department of Justice (DOJ) did not express a direct opinion on the lawsuit, they provided legal analysis that backs Musk’s argument ahead of a crucial hearing in Oakland, California.
Musk, who co-founded OpenAI and owns AI startup xAI, alleges that OpenAI violated antitrust laws by requiring investors to avoid funding rival artificial intelligence companies and by sharing board members with Microsoft, which is also named in the lawsuit. The lawsuit asserts that these actions harmed competition in the AI market.
In response, OpenAI dismissed the lawsuit, claiming that Musk’s allegations lack evidence and are merely harassment. The company also argued that the claims regarding board member affiliations were irrelevant, as two former Microsoft-affiliated board members—Reid Hoffman and Deannah Templeton—are no longer associated with OpenAI.
However, the FTC and DOJ emphasized that even former board members could still possess sensitive competitive information, which could have implications for antitrust law violations. The authorities also stated that a group investor boycott, as Musk alleges, could be illegal even if the organizer was not a direct investor, reinforcing Musk’s claims of anticompetitive conduct.
The FTC is currently investigating partnerships in AI, including the collaboration between OpenAI and Microsoft, to determine if there have been violations of antitrust or consumer protection laws.
