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Biden's parting gift to Musk: fodder for his battle against Sam Altman

Jan 25, 2025 - businessinsider.com
On its last business day, the Biden administration issued reports from the DOJ and FTC that Elon Musk is using in his antitrust lawsuit against Sam Altman and OpenAI. Musk's lawsuit, filed in federal court in Oakland, California, accuses Altman of betraying OpenAI's founding mission and alleges that the partnership between OpenAI and Microsoft is monopolistic. The reports describe potential illegalities in partnerships between major cloud service providers like Microsoft and AI developers like OpenAI, supporting Musk's claims of antitrust violations, including "interlocking directorates" where individuals serve on both companies' boards.

Musk's lawsuit seeks to dissolve the Microsoft-OpenAI partnership and claims Microsoft stands to gain significantly from its relationship with OpenAI. The DOJ and FTC filings support Musk's position, highlighting concerns over Big Tech monopolies and their impact on AI technology. The FTC report also scrutinizes other AI partnerships, such as Amazon-Anthropic and Google-Anthropic, emphasizing their potential impact on the AI industry. The next court date for Musk's lawsuit is February 4.

Key takeaways:

  • Elon Musk is using Biden administration reports as evidence in his antitrust lawsuit against Sam Altman and OpenAI, alleging monopolistic practices with Microsoft.
  • The lawsuit accuses OpenAI and Microsoft of forming an unregulated "de facto merger" and seeks to void their licensing agreement and obtain damages.
  • The DOJ and FTC filings support Musk's claims, highlighting concerns over interlocking directorates and the impact of major AI partnerships on competition.
  • The lawsuit's next court date is February 4, with Musk's side agreeing with the DOJ and FTC's analytic frameworks regarding the partnerships.
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