Antitrust violation

FTC comments on Musk’s lawsuit against OpenAI

The US antitrust regulator, the Federal Trade Commission (FTC), commented on Elon Musk's lawsuit against OpenAI on Friday. The agency pointed to legal principles that could support Musk's claim that OpenAI and Microsoft are engaging in anti-competitive practices in violation of consumer protection laws.

The tech billionaire accuses OpenAI of violating antitrust laws by requiring investors not to invest in competing AI companies and by sharing board members with Microsoft, which is also named in the lawsuit.

OpenAI had already stated that the allegations about the board members were moot because Microsoft board member Reid Hoffman, who also sat on OpenAI's board of directors, and Microsoft executive Deannah Templeton, who had an observer seat, were no longer affiliated with the company.

However, the FTC has now stated that these individuals would still have sensitive competitive information even after leaving the board. Board members who only had observer status were also not exempt from the law, the authority stated.

A spokeswoman for Microsoft declined to comment on the authority's statement. A spokesperson for OpenAI did not immediately respond to a request for comment.