OpenAI calls for investigation into Musk as legal battle nears trial

OpenAI has called on US authorities to investigate Elon Musk over what it describes as “improper and anti-competitive behaviour,” escalating a high-stakes legal battle between the two sides ahead of trial.

In letters sent to California Attorney General Rob Bonta and Delaware Attorney General Kathy Jennings, OpenAI urged regulators to review Musk’s actions and those of his associates. 

The appeal comes just weeks before a closely watched courtroom showdown set to begin this month.

The dispute stems from a 2024 lawsuit filed by Musk against OpenAI and its CEO, Sam Altman. 

Musk, who co-founded OpenAI in 2015 before leaving in 2018, has accused the organisation of straying from its original nonprofit mission as it transitions toward a for-profit structure.

OpenAI, however, argues that Musk’s lawsuit — which reportedly seeks more than $100 billion in damages — could severely harm its nonprofit foundation and disrupt its operations. 

The company also warned that the case could undermine broader efforts to ensure that artificial general intelligence (AGI) is developed responsibly and for the benefit of humanity.

Tensions between the parties have deepened as Musk has expanded his own AI venture, xAI, which develops competing technologies including the Grok chatbot.

The case has drawn further attention following reports that Mark Zuckerberg was approached about joining a consortium bid related to OpenAI, though he ultimately declined.

A judge in Oakland, California, has ruled that the case will proceed to a jury trial in April. 

The outcome could have far-reaching implications for the governance of AI companies, the balance between nonprofit and for-profit models, and competition across the rapidly evolving artificial intelligence (AI) sector.