US Government Supports Elon Musk's Arguments In Lawsuit Against OpenAI

Elon Musk is trying to prevent OpenAI from converting into a public company. (photo: x @cb_doge)

JAKARTA - US antitrust law enforcers interfered in Elon Musk's lawsuit trying to prevent OpenAI from becoming a public company. The Tesla CEO pointed out a legal doctrine in favor of his claim that OpenAI and Microsoft were involved in anti-competitive practices.

The US Federal Trade Commission (FTC) and the US Department of Justice (DOJ) did not express their opinion on the case, but they provided legal analysis regarding aspects of the case ahead of a hearing on Tuesday, January 14 in tingkat, California. Musk is one of the founders of OpenAI and owner of startup AI xAI.

Until now, a Microsoft spokesman has refused to comment on the lawsuit. The OpenAI spokesperson referred to court documents in which the company stated that the lawsuit lacked evidence and was considered a nuisance.

"The participation of DOJ and FTC is a sign of how serious regulators take OpenAI and Microsoft violations," Musk's lawyer, Marc Toberoff, said.

The FTC is currently also investigating partnerships in AI, including between Microsoft and OpenAI, by examining possible anti-competitive behavior in Microsoft and investigating whether OpenAI violates consumer protection laws.

Musk accused OpenAI of violating antitrust laws by making investors agree not to invest in rival companies in artificial intelligence (AI), and by distributing board members with Microsoft, who is also a defendant in this lawsuit.

OpenAI said claims related to the board members were irrelevant, as Microsoft board member Reid Hoffman, who was once on the OpenAI board, and Microsoft executive Deannah Templeton, who has observer seats, is now no longer affiliated with the company.

However, according to the FTC and DOJ, even after they leave the council, the directors can still have sensitive information related to competition. They assert that council members who only have observer status are not exempt from applicable laws.

Musk also claims that OpenAI facilitates investor boycotts of its competitors. This kind of claim remains acceptable even though the boycott organizers are not members, the FTC and DOJ said.