OpenAI urges California, Delaware to investigate Musk's 'anti-competitive behavior’ - Reuters

Published
Score
9

Why it matters

OpenAI urged the attorneys general of California and Delaware to investigate Elon Musk and associates for alleged "improper and anti-competitive behavior," claiming his ongoing lawsuit—seeking over $100 billion in damages—could cripple its nonprofit foundation and hinder efforts to develop artificial general intelligence (AGI) for humanity's benefit.[1][2][3][4]

Key parties include OpenAI (led by CEO Sam Altman and Chief Strategy Officer Jason Kwon), Elon Musk (OpenAI co-founder in 2015, departed 2018, founder of rival xAI with chatbot Grok), Meta CEO Mark Zuckerberg (allegedly approached by Musk for a takeover bid but declined), California AG Rob Bonta, and Delaware AG Kathy Jennings.[1][2][3][4] The core dispute stems from Musk's 2024 lawsuit accusing OpenAI of abandoning its nonprofit mission by restructuring for profit; OpenAI countered in an August 2025 filing about Musk's Zuckerberg outreach, and an Oakland judge ruled in January 2026 for a jury trial starting April 2026.[1][2][3][4]

This escalation occurred on April 6, 2026, via a letter from Kwon ahead of the trial, spotlighting AI industry rivalries amid OpenAI's recapitalization scrutiny.[1][2][3] It's newsworthy due to high stakes in AI governance, potential regulatory probes into competition, and implications for transformative tech dominance between tech giants.[1][4]

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