US FTC weighs in on Elon Musk's lawsuit against OpenAI
- by Indiatimes
- Jan 11, 2025
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Last Updated: Jan 11, 2025, 05:45:00 PM IST
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The US Federal Trade Commission, while it did not support either side, pointed out the legalities that could potentially support Elon Musk's claim that OpenAI and Microsoft engaged in anticompetitive practices. Musk's claim is that OpenAI breached antitrust laws by requiring investors to refrain from investing in competing artificial intelligence companies.
Reuters
The US Federal Trade Commission weighed in on Friday on Elon Musk's lawsuit seeking to block OpenAI's conversion to a public company, pointing out legal doctrines that could support his claim that OpenAI and Microsoft engaged in anticompetitive practices.
While it did not officially support either side, the FTC offered legal analysis that could aid Musk at a Tuesday hearing in Oakland, California. Musk cofounded OpenAI and owns AI startup xAI.
A spokesperson for Microsoft declined to comment. A spokesperson for OpenAI did not immediately respond to a request for comment.
The FTC is separately looking into partnerships in AI, including between Microsoft and OpenAI, investigating potentially anticompetitive conduct at Microsoft and probing whether OpenAI violated consumer protection laws.
Musk alleges OpenAI violated antitrust law by making investors agree not to invest in rival artificial intelligence firms, and by sharing board members with Microsoft, which is also a defendant in the lawsuit.
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