The lawsuit describes Microsoft's partnership with OpenAI as a "de facto merger" and alleges that OpenAI acted anticompetitively by asking investors not to invest in competitors during its recent funding round. This is the latest development in an ongoing feud between Musk and OpenAI CEO Sam Altman. OpenAI, Microsoft, and Hoffman have not yet responded to the lawsuit.
Key takeaways:
- Elon Musk has amended a lawsuit against OpenAI to include Microsoft and Reid Hoffman, a Microsoft board member, accusing them of forming an AI monopoly and engaging in anticompetitive practices.
- The lawsuit alleges that OpenAI is trying to starve competitors of AI talent by offering staff lavish compensation, with plans to spend $1.5 billion on personnel for just 1,500 employees.
- The suit describes Microsoft's partnership with OpenAI as a 'de facto merger', claiming that Microsoft and OpenAI are essentially the same entity.
- The lawsuit also claims that OpenAI acted in an anticompetitive manner by asking investors in its most recent funding round not to invest in competitors, including Musk's startup xAI.