Musk names Microsoft as defendant in amended lawsuit against OpenAI

Elon Musk, the US government efficiency czar and founder of several tech companies, has amended his lawsuit against OpenAI, accusing the organization of abandoning its non-profit roots. The revised complaint, filed in a California district court, now includes new defendants: Microsoft, LinkedIn co-founder Reid Hoffman, and Dee Templeton, a former OpenAI board member and senior Microsoft executive.

The amended complaint also names new plaintiffs, including Shivon Zilis, a Neuralink executive and former OpenAI board member, as well as Musk's AI company, xAI.

In the lawsuit, Musk’s legal team argues that OpenAI, co-founded by Musk as a non-profit committed to safety and transparency, has shifted direction under the leadership of Sam Altman and Greg Brockman, with strong influence from Microsoft. The lawsuit claims that OpenAI is now "fast becoming a fully for-profit subsidiary of Microsoft."

“OpenAI was initially established as an independent charity, nurtured in its early stages by Musk's money, advice, and connections. However, under Altman’s direction, it has become a corporate entity focused on profit rather than its original mission,” the lawsuit reads.

Musk’s lawyers further accuse OpenAI of actively trying to eliminate competitors, including Musk’s own xAI, by pressuring investors to avoid funding rival AI ventures.

The lawsuit also criticizes the rapid transformation of OpenAI from a tax-exempt charity to a $157 billion for-profit company in just eight years, calling it a violation of key economic and legal principles. “This unprecedented shift has involved lying to donors, members, regulators, markets, and the public,” the complaint claims.

Shivon Zilis, who stepped down from OpenAI's board in 2023, is listed as an “injured employee” under California’s Corporations Code. Zilis, who has worked closely with Musk in the past, served as a project director at Tesla and also directed Neuralink's research efforts.

The lawsuit alleges that OpenAI’s growing ties with Microsoft have created a “opaque web of for-profit affiliates” designed to extract value from the intellectual property, employees, and connections Musk helped build. The complaint accuses Microsoft and OpenAI’s leadership of using Musk’s name and OpenAI’s charitable status to further their own corporate interests.

While Musk has long expressed concerns about the potential existential risks of AI and advocated for decentralization and openness, the lawsuit asserts that Microsoft’s leadership, including CEO Satya Nadella and co-founder Bill Gates, have downplayed these risks. According to Musk’s legal team, Nadella and Gates minimized Musk’s concerns, labeling them as "panic" and "too far off in the future."

Microsoft has yet to respond publicly to the amended lawsuit.