OpenAI urges California and Delaware to investigate Musk's anti-competitive behavior ahead of April trial

OpenAI asked California and Delaware attorneys general to investigate Elon Musk for "anti-competitive behavior" days before the April 27 trial. The letter alleges Musk coordinated with Mark Zuckerberg and tracked CEO Sam Altman's movements.

Published on: Apr 07, 2026
OpenAI urges California and Delaware to investigate Musk's anti-competitive behavior ahead of April trial

OpenAI urges regulators to investigate Musk's "anti-competitive behavior" ahead of April trial

OpenAI asked California and Delaware attorneys general on Monday to investigate "improper and anti-competitive behavior" by Elon Musk and his associates, escalating tensions as jury selection approaches in a high-profile lawsuit between the two sides.

In a letter, OpenAI strategy chief Jason Kwon alleged that Musk has worked to undermine the company through various attacks, including by coordinating efforts with Meta CEO Mark Zuckerberg. Jury selection for the trial begins April 27 in the Northern District of California.

What OpenAI claims Musk has done

Kwon said Musk's behavior is designed to remove control of artificial general intelligence development from those "legally obligated to pursue the mission of ensuring that AGI benefits all of humanity," and place it with competitors lacking mission-driven principles.

OpenAI referenced a recent New Yorker report stating that Musk and his intermediaries conducted opposition research on CEO Sam Altman, tracking his flights and movements. The report also said false allegations of sexual misconduct were circulated against Altman.

The letter also addressed xAI's Grok platform, which is under investigation globally for generating sexually explicit deepfakes of women and children without consent, allegedly to boost usage ahead of an IPO.

Background on the dispute

Musk and Altman co-founded OpenAI in 2015 as a nonprofit. Musk left in 2018 after attempting to merge the company with Tesla. He later launched competing AI company xAI and sued OpenAI in 2024, claiming he was deceived about the company's conversion to a for-profit structure.

In January, OpenAI warned investors and banking partners that Musk would likely make "deliberately outlandish, attention-grabbing claims" and comments "not grounded in reality" as the lawsuit proceeded.

OpenAI Chief Global Affairs Officer Chris Lehane told reporters on Monday that Musk and Zuckerberg are using approaches "sharply worthy of investigation," questioning why two of the world's wealthiest and most powerful people are trying to stop a nonprofit from advancing.

Musk's history with regulators

Musk has long accused both California and Delaware of bias against him, moving Tesla and SpaceX headquarters from California to Texas and reincorporating businesses in Nevada and Texas.

xAI is currently suing California Attorney General Rob Bonta, claiming the state's AI data transparency law violates the company's free speech rights and ability to protect trade secrets.

Musk and Jared Birchall, who runs his family office, did not immediately respond to requests for comment.

Learn more: AI for Executives & Strategy | AI for Legal


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