Musk Takes Legal Action, Adds Microsoft to OpenAI Case

Elon Musk has restarted his legal fight against OpenAI, adding Microsoft as a defendant in his updated lawsuit. The new filing, made in a California court, also includes LinkedIn co-founder Reid Hoffman and former OpenAI board member Dee Templeton. Musk’s AI company, xAI, and Neuralink executive Shivon Zilis are now part of the case as well. Musk, who helped found OpenAI in 2015, accuses the company of abandoning its original mission to develop AI for the public good. Musk claims OpenAI’s shift toward a for-profit model has unfairly benefited Microsoft, which has invested heavily in the company.  He argues that OpenAI is using Microsoft’s resources and infrastructure to outcompete rivals like xAI. The lawsuit claims Hoffman’s ties to Microsoft and OpenAI gave him access to sensitive information, while Templeton’s role as a board observer let her influence potentially illegal deals. The complaint states, “Allowing Templeton and Hoffman to serve on OpenAI’s board undermined...the prohibition on interlocking directorates,” which aims to prevent sharing sensitive data and anticompetitive activities. In addition to Microsoft, Hoffman, and Templeton, California Attorney General Rob Bonta is also named in Musk’s lawsuit. Bloomberg reported that OpenAI is in talks with Bonta’s office about changing its corporate structure. Zilis, a former OpenAI board member and close associate of Musk, is included in the lawsuit. She raised concerns about OpenAI’s direction and is now part of the case, claiming she was harmed by the company’s actions. At the heart of the lawsuit is Musk’s belief that OpenAI, which started as a non-profit, has turned into a profit-driven entity, ultimately becoming a subsidiary of Microsoft. OpenAI has dismissed the claims, calling them baseless. This legal drama highlights a growing divide between Musk and OpenAI as the tech industry watches the outcome closely.