OpenAI Urges California, Delaware to Probe Musk's 'Anti-Competitive Behavior'

ChatGPT maker says Musk's lawsuit seeking over $100 billion in damages could cripple the nonprofit organization.

Apr. 6, 2026 at 10:12pm

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A highly detailed, glowing 3D illustration of a complex AI neural network architecture, with neon cyan and magenta lights illuminating the intricate cybernetic hardware, conceptually representing the technological power behind advanced language models.As the legal battle over AI dominance intensifies, the underlying technological infrastructure powering the next generation of language models remains a closely guarded secret.Oakland Today

OpenAI has urged the California and Delaware attorneys general to investigate Elon Musk and his associates for alleged 'improper and anti-competitive behavior'. The nonprofit organization behind ChatGPT said Musk's lawsuit, which seeks over $100 billion in damages, could effectively cripple the company. OpenAI accused Musk, a co-founder who left in 2018, of trying to enlist rival Mark Zuckerberg in a bid to take over the company last year.

Why it matters

The high-stakes legal battle between OpenAI and Musk highlights the growing rivalry in the artificial intelligence industry, where companies are racing to develop the next generation of advanced language models. The outcome of this case could have significant implications for the future of AI development and who controls the technology.

The details

In a court filing in August, OpenAI said Musk tried to enlist Meta CEO Mark Zuckerberg for a bid to take over the company last year, but Zuckerberg did not come on board. OpenAI's chief strategy officer Jason Kwon said in a letter sent on Monday that Musk's lawsuit, which seeks over $100 billion in damages, could undermine the company's efforts to ensure that artificial general intelligence (AGI) benefits all of humanity.

  • Musk sued OpenAI, its CEO Sam Altman and others in 2024, accusing them of violating OpenAI's founding mission as it restructures to a for-profit entity.
  • A judge in Oakland, California, ruled in January that a jury will hear the trial, expected to start in April.

The players

OpenAI

The nonprofit organization behind the popular AI chatbot ChatGPT, which is at the center of the legal battle with Elon Musk.

Elon Musk

The billionaire entrepreneur who co-founded OpenAI in 2015 but left the organization in 2018 and later launched a rival AI company, xAI, with its own chatbot Grok.

Sam Altman

The CEO of OpenAI, who is named in Musk's lawsuit against the organization.

Mark Zuckerberg

The CEO of Meta Platforms, who OpenAI said Musk tried to enlist for a bid to take over the company last year, but Zuckerberg did not come on board.

Rob Bonta

The California Attorney General, who OpenAI has urged to investigate Musk's 'improper and anti-competitive behavior'.

Kathy Jennings

The Delaware Attorney General, who OpenAI has also urged to investigate Musk's 'improper and anti-competitive behavior'.

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What they’re saying

“The lawsuit sought damages of more than $100 billion from its nonprofit foundation, which it said would effectively cripple the organization.”

— Jason Kwon, Chief Strategy Officer, OpenAI

“Musk's filings in the litigation 'suggest that your offices did not thoroughly investigate OpenAI's plan to recapitalize and merely relied on promises about what OpenAI will do in the future.'”

— Jason Kwon, Chief Strategy Officer, OpenAI

What’s next

A judge in Oakland, California, ruled in January that a jury will hear the trial, expected to start in April.

The takeaway

This legal battle between OpenAI and Musk highlights the growing rivalry in the artificial intelligence industry, where companies are racing to develop the next generation of advanced language models. The outcome of this case could have significant implications for the future of AI development and who controls the technology.