TechBooky AI Assistant
TechBooky AI Assistant
👋 Welcome to TechBooky AI Assistant

I can help with:
🔎 Tech News
🤖 AI Topics
💻 Gadgets
☁️ Cloud
✍️ Guest Posts
📢 Advertising
🔗 Backlinks
📩 Newsletter
  • AI Search
  • Cryptocurrency
  • Earnings
  • Enterprise
  • About TechBooky
  • Submit Article
  • Advertise With TechBooky
  • Contact Us
TechBooky
  • African
  • AI
  • Metaverse
  • Gadgets
  • Intelligence
  • AI Search
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Search in posts
Search in pages
  • African
  • AI
  • Metaverse
  • Gadgets
  • Intelligence
  • AI Search
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Search in posts
Search in pages
TechBooky
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Search in posts
Search in pages
Home Enterprise

Musk adds Microsoft to OpenAI lawsuit

Akinola Ajibola by Akinola Ajibola
November 16, 2024
in Enterprise
Share on FacebookShare on Twitter
Share this story

Send it to someone who should read it.

f Facebook X X in LinkedIn wa WhatsApp tg Telegram @ Email
In Brief
  • After being withdrawn in July, Elon Musk’s lawsuit against OpenAI, which claimed the business had abandoned its non-profit goal, was resurrected in August.
  • The lawsuit now includes Microsoft, Reid Hoffman, a co-founder of LinkedIn, and Dee Templeton, a Microsoft vice president and former board member of OpenAI, as new...
  • Where Microsoft has been named as a defendant in an amended lawsuit filed by Elon Musk against OpenAI, which he describes as a “de facto merger”...

After being withdrawn in July, Elon Musk’s lawsuit against OpenAI, which claimed the business had abandoned its non-profit goal, was resurrected in August. The lawsuit now includes Microsoft, Reid Hoffman, a co-founder of LinkedIn, and Dee Templeton, a Microsoft vice president and former board member of OpenAI, as new defendants in an amended complaint. Where Microsoft has been named as a defendant in an amended lawsuit filed by Elon Musk against OpenAI, which he describes as a “de facto merger” and charges with anticompetitive behaviour.

Musk was one of the founding founders of OpenAI, a non-profit organization founded with the goal of researching and developing AI for the good of humanity. In 2018, he departed the organization due to differences regarding its future.

Microsoft and OpenAI are accused of creating a monopoly in the lawsuit, which also names Reid Hoffman as a defendant. Elon Musk described OpenAI as a “de facto merger” and accused it of anticompetitive activities; Microsoft has been named as a defendant in this new case.

New plaintiffs are also included in the modified filing: Musk’s AI business, xAI, and Shivon Zilis, a former board member of OpenAI and executive at Neuralink.

In an attempt to “starve” competitors of AI expertise, Musk said OpenAI is paying its employees “lavish compensation.”

Citing “lavish compensation” proposals as one example, the complaint charges Microsoft and OpenAI with establishing an AI monopoly and committing “intensified” anticompetitive behaviour.

“OpenAI has tried to starve competitors of AI talent by aggressively recruiting employees with offers of lavish compensation, and is on track to spend $1.5 billion on personnel for just 1,500 employees,” Musk’s attorneys stated in the amended complaint, which was submitted to a federal court in Northern California.

In the amended complaint, Musk’s lawyers said, “OpenAI has tried to starve competitors of AI talent by aggressively recruiting employees with offers of lavish compensation, and is on track to spend $1.5 billion on personnel for just 1,500 employees.” The complaint was filed in a Northern California federal court.

The attorneys for Musk stated that the defendants “possess a nearly 70% share of the generative AI market, constituting a monopoly, or, in the alternative, an attempt or conspiracy to monopolize the generative AI market.”

The defendants “possess a nearly 70% share of the generative AI market, constituting a monopoly, or, in the alternative, an attempt or conspiracy to monopolize the generative AI market,” according to Musk’s lawyers.

The latest development in the long-running dispute between Musk and OpenAI CEO Sam Altman is the updated lawsuit. Musk initially filed a lawsuit against OpenAI and its cofounders Altman and Greg Brockman in March, claiming that the company’s partnership with Microsoft, which has contributed over $13 billion to the venture, compromised its non-profit objective. In response, OpenAI referred to the lawsuit as “incoherent” and “contradictory.”

Also worth reading
Microsoft Voluntary Exit Offer Could Reach 60,000 Staff OpenAI Models Are Coming to Google Cloud as AI Rivals Partner SAP Expands Joule Tools to Build and Govern Enterprise AI Agents Microsoft Wants to Treat AI Agents Like Insider Risks Google Adds More Source Links to AI Search as Publishers Seek Traffic US Suspends Microsoft From Green-Card Programme

After contributing to the creation of OpenAI in 2015, Musk abruptly cancelled his lawsuit. He filed the most recent lawsuit in August, claiming that he was “deceived” into confounding OpenAI and that the business has abandoned its original goal of creating AI that benefits humanity in favour of financial interests. In September, OpenAI announced that it was switching to a for-profit governance model.

In the latest complaint, OpenAI is accused of engaging in anticompetitive behaviour when it requested investors in its most recent funding round to refrain from funding other companies, such as Musk’s business xAI. The lawsuit cites a Financial Times article from October that claimed this was one of the conditions demanded of possible investors in the $6.6 billion investment round that was concluded last month.

SoftBank invested $500 million in OpenAI during that round. SoftBank still has the option to invest in additional AI firms, according to Navneet Govil, chief financial officer of SoftBank’s Vision Funds, who previously spoke with Business Insider. “Our view is if it’s a disruptive company and the addressable market is large, there’s room for more than one player,” Govil said to Hasan Chowdhury of BI.

Business Insider’s requests for response, issued outside of regular business hours, were not immediately answered by Microsoft, OpenAI, or Hoffman. Hoffman referred to Musk’s lawsuit against OpenAI in September as a case of “sour grapes.”

The updated lawsuit claims that Templeton, who was briefly appointed by Microsoft to serve as an observer on the non-voting board at OpenAI, was in a position to promote agreements between Microsoft and OpenAI that would have violated antitrust laws.

In violation of antitrust regulations, “the prohibition on interlocking directorates is intended to prevent the sharing of competitively sensitive information and/or to provide a forum for the coordination of other anticompetitive activity,” the lawsuit states.

In Musk’s complaint, Rob Bonta, the attorney general of California, is included as a defendant alongside Microsoft, Hoffman, and Templeton. According to a Bloomberg story this month, OpenAI is discussing the process of altering its corporate structure with Bonta’s office.

Zilis, who left OpenAI’s board in 2023 after almost four years of service, was standing as an “injured employee” under the California Corporations Code, according to the updated complaint. According to the complaint, Zilis frequently voiced internal concerns about OpenAI’s dealmaking, but they were ignored; these concerns were largely the same as Musk’s.

Zilis, who oversaw Neuralink research and served as a project director at Tesla from 2017 to 2019, has strong ties to Musk. Musk’s brain-computer interface project is called Neurolink. She is also the mother of Musk’s twins, Strider and Azure, as well as Techno Mechanicus.

In January 2018, OpenAI CEO Sam Altman suggested that the company sell its own cryptocurrency before deciding to switch to a capped-profit structure. This is one of the unique details included in the 107-page revised lawsuit.

In an email to Musk dated January 21, 2018, Altman wrote, “Heads up, spoke to some of the safety team and there were a lot of concerns about the ICO and possible unintended effects in the future,” as evidenced by an exhibit included with the amended complaint. An unregulated method of raising money for cryptocurrency businesses is an initial coin offering, or ICO. “I want to stress the importance of maintaining confidentiality, but I think it’s crucial that we get support and give people an opportunity to voice their opinions in advance.”

Related Reading

More contextual TechBooky stories selected from tags, categories and article context.

  • 1778790004276
    Elon Musk Loses Lawsuit Against OpenAI and Sam…
  • Elon-Musk-vs-Sam-Altman
    OpenAI Says Elon Musk Is Trying to Upend a $100…
  • GettyImages-2273014217
    OpenAI Says Musk Sent Threatening Texts to Brockman…
  • OpenAI
    OpenAI Reveals Plans to Become a For-Profit Firm
  • im-73979218
    Elon Musk Takes The Stand In High-Stakes OpenAI…
  • Microsoft-Starlink_2026-02-25_news
    SpaceX Starlink, Microsoft Partner on Global…
  • Untitled design - 1
    AI Users File Antitrust Suit Against Microsoft Over…
  • 3fa094f7fdea0440e98e9dd0088731ea
    OpenAI To Train AI Models Using Content By Financial Times
Keep Reading Smarter

Search TechBooky with AI

Use TechBooky's AI Search to explore the context behind this story and related coverage across the site.

Try AI Search
More On This Topic
Enterprise
Follow TechBooky

Follow TechBooky for more technology stories and newsroom updates.

f Facebook X X in LinkedIn ig Instagram wa WhatsApp

Akinola Ajibola

Akinola Ajibola

Akinola Ajibola contributes to TechBooky, covering technology news, digital innovation and developments shaping the global digital economy.

Search TechBooky
Open TechBooky AI Search Try the AI Assistant

BROWSE BY CATEGORIES

Receive top tech news directly in your inbox

subscription from
Loading

Freshly Squeezed

  • Microsoft Revenue Hits $92.3B as Azure Growth Reaches 48% October 28, 2026
  • Alphabet Cloud Revenue Doubles to $30.7B as AI Spending Deepens Cash Drain October 28, 2026
  • Reddit Rolls Out For You and Following Feeds as Discovery Takes Centre Stage October 28, 2026
  • Why Apple Finally Embraced Touch on the Mac After Years of Resistance October 28, 2026
  • GitHub Copilot Fusion Routes Coding Tasks Across AI Models to Cut Cost October 28, 2026
  • GitHub Hits 7.38 Billion September Commits as Former CEO Launches Rival October 28, 2026
  • Amazon Unveils Echo Show 16, Echo Time and Alexa Photo Frame as Prices Rise October 28, 2026
  • Google Unveils Gemini 4 Carbon, a Cyber-Focused AI Model That Tops New Index October 28, 2026
  • Apple Unveils First Touchscreen MacBook Pro With PROLED XDR From $2,899 October 28, 2026
  • Samsung Galaxy Buds On Reach US in November at $229 October 28, 2026
  • FCC Clears Amazon’s $11.5B Globalstar Deal, Opening Satellite-to-Phone Path October 28, 2026
  • Anthropic Buys One-Person Drug Startup as Claude Helps Test Rare-Disease Treatment October 28, 2026

Browse Archives

October 2026
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Sep    

Quick Links

  • About TechBooky
  • Advertise With TechBooky
  • Contact us
  • Submit Article
  • Privacy Policy
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Search in posts
Search in pages
  • African
  • Artificial Intelligence
  • Gadgets
  • Metaverse
  • Tips
  • AI Search
  • Intelligence
  • About TechBooky
  • Advertise With TechBooky
  • Submit Article
  • Contact us

© 2025 Designed By TechBooky Elite

Discover more from TechBooky

Subscribe now to keep reading and get access to the full archive.

Continue reading

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.