OpenAI Calls on State Attorneys-General to Investigate Elon Musk Over “Anticompetitive” Conduct
OpenAI has made a bold legal move by urging top state prosecutors to investigate Elon Musk ahead of a high-stakes court battle set to unfold this month. The ChatGPT maker sent formal letters to the California and Delaware attorneys-general, requesting they look into what it describes as “improper and anticompetitive behavior” by Musk and his associates.
The conflict between Musk and OpenAI has been building for years. Musk filed a lawsuit against OpenAI, its CEO Sam Altman, and other key figures in 2024, alleging that the company betrayed its original non-profit mission as it moves toward a restructured for-profit model. While Musk was among OpenAI’s founding members back in 2015, he departed from the organization in 2018 and later launched xAI, his own AI venture featuring the rival chatbot Grok.
The legal feud has taken several dramatic turns since it began. In a court filing submitted last August, OpenAI revealed that Musk had allegedly approached Meta CEO Mark Zuckerberg in an attempt to include him in a consortium bid for OpenAI earlier that year. Zuckerberg, however, reportedly declined to participate in the effort.
OpenAI Warns Lawsuit Could Derail the Future of AGI Development
On Monday, OpenAI formally addressed letters to California Attorney-General Rob Bonta and Delaware Attorney-General Kathy Jennings. The company warned that Musk’s lawsuit is seeking damages exceeding US$100-billion from its non-profit foundation — an amount it says would effectively cripple the organization and shut down its broader mission.
OpenAI’s Chief Strategy Officer Jason Kwon authored the letter, stressing that the litigation poses a serious threat to the company’s work toward ensuring that artificial general intelligence (AGI) is developed for the benefit of all of humanity. Kwon argued that Musk’s legal strategy is not simply a business dispute but an attempt to derail one of the most consequential technological missions of our time.
Kwon also took direct aim at how state officials have handled the restructuring review. He stated that Musk’s court filings suggest the attorneys-general did not conduct a thorough investigation into OpenAI’s recapitalization plan and instead relied on assurances about what the company intends to do going forward. The pointed comment signals OpenAI’s frustration with what it views as insufficient regulatory scrutiny of Musk’s campaign against the company.
The trial is scheduled to take place in Oakland, California, after a judge ruled in January that the case will be heard before a jury. The legal proceedings are being closely watched across the technology and AI industries, as the outcome could have sweeping implications for how AI companies transition from non-profit to for-profit structures.
Critics have noted that Musk’s position carries an inherent tension — he has launched his own competing AI business while simultaneously suing the organization he once helped build, claiming it strayed from its founding ideals. OpenAI has leaned into that contradiction, framing the lawsuit as a competitive attack disguised as a principled stand.
As the trial date approaches, the pressure is mounting on both sides. OpenAI’s decision to involve state prosecutors represents a significant escalation, signaling that the company intends to fight aggressively on every available front to protect its restructuring plans and its broader mission to shape the future of artificial intelligence responsibly.