The Editorial Staff at AIChief is a team of professional content writers with extensive experience in AI and marketing. Founded in 2025, AIChief has quickly grown into the largest free AI resource hub in the industry.
Musk Takes Legal Action, Adds Microsoft to OpenAI Case
Elon Musk expands his lawsuit against OpenAI, now naming Microsoft as a defendant in a legal battle over AI practices and competition.

Originally reported bytechcrunch
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.
#news
ES
Editorial Staff Editor
View all posts
Filter:
No comments yet. Be the first to comment!
Related stories
Justin Ernest: $500M Startup King, No VC Fund Required
#ainews#justinernest#sabertoothcapital#spvinvestments#aistartups
Justin Ernest identified a significant void in the venture capital landscape last year: while family offices and smaller institutional investors were keen to back the most rapidly expanding AI compani...
3h ago
Google Ignites AI Subscription Price War
#ainews#google#aisubscription#pricewar#commoditization
Google has significantly enhanced the affordability of its budget AI subscription, effectively extending a burgeoning price war from emerging markets directly to American users. On Monday, the tech gi...
3h ago
Hands-On With Siri AI: It Actually Works
#ainews#siriai#apple#geminimodel#calendarintegration
While its capabilities may appear fundamental, the consistent functionality of Apple's latest AI-powered Siri represents a significant milestone. For many parents, the ultimate desire from an AI assis...
4h ago