As of January 11, 2025, the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) have partially supported Elon Musk’s claims in his lawsuit against OpenAI, which is aimed at blocking the company’s transition into a for-profit entity.
In a court filing, the DOJ and FTC raised concerns about potential market competition issues due to overlapping board memberships. Specifically, they highlighted the involvement of Reid Hoffman, a LinkedIn co-founder, who simultaneously held positions on both OpenAI’s and Microsoft’s boards from 2017 to 2023. The agencies expressed that such conflicts of interest could undermine competition, even though these individuals have since resigned from their positions.
Musk’s lawsuit, which also targets Microsoft, accuses the companies of violating antitrust laws. He is seeking an injunction to stop OpenAI from transitioning to a for-profit model, claiming that it strays from its original mission of advancing AI for the public good. The DOJ and FTC, though not opposing the restructuring directly, have emphasized that even voluntary cessation of alleged illegal behavior requires clear evidence that such actions will not recur.
Additionally, the FTC has been investigating OpenAI in relation to broader AI investment activities, including whether the company misled consumers or violated antitrust laws through board overlaps involving Hoffman and Microsoft executive Deannah Templeton.
This legal battle is the latest in a series of disputes between Musk and OpenAI, which Musk co-founded before parting ways with the company in 2018. Musk’s lawsuit and his broader critique of OpenAI’s direction continue to shape the ongoing debate over AI regulation and competition in the tech industry.
The case is ongoing, with a hearing on the injunction scheduled for Tuesday in Oakland, California.