OPENAI has urged regulators in California and Delaware to investigate Elon Musk for what it described as “improper and anti-competitive behaviour”, intensifying a bitter dispute ahead of a closely watched trial over the company’s future direction.
In a letter dated April 6, chief strategy officer Jason Kwon accused Musk of attempting to seize control of the organisation for personal benefit.
“He has repeatedly attempted – and failed – to wrest control of the nonprofit for his personal gain” in a bid to dominate the future of artificial intelligence, Bloomberg cited Kwon writing.
The intervention comes just weeks before Musk is due to face OpenAI and Microsoft in court, where he alleges the company abandoned its founding mission as a public-interest entity by accepting billions in investment and pursuing a transition to a for-profit structure.
Musk is seeking damages of up to US$134 billion, in a case that could reshape governance standards across the rapidly evolving AI sector.
“He has repeatedly attempted – and failed – to wrest control of the nonprofit for his personal gain,” Kwon said, adding that the lawsuit raises broader questions about whether alternative governance models can coexist within the industry.
“Musk’s lawsuit is not just against OpenAI; it is about whether there is room in the industry for a company subject to the mission and structure outlined in the October agreements, or whether that ground must be ceded to Musk and his co-conspirators,” he said.
The dispute marks a dramatic rupture between former collaborators. Musk co-founded OpenAI in 2015 alongside Sam Altman and others, but departed its board in 2018. He later established rival firm xAI in 2023, positioning it as a direct competitor.
Tensions escalated further in 2025 when OpenAI rejected an unsolicited US$97.4 billion bid from Musk to acquire assets held by its nonprofit parent.
OpenAI has defended its restructuring, stating that while it is transitioning towards a for-profit model, its nonprofit arm will retain control. The company has also confirmed that Microsoft holds a 27 per cent stake under the revised structure.
Regulators had previously reviewed the restructuring plans. Rob Bonta and Kathy Jennings ultimately declined to block the move after securing assurances over governance and oversight.
A spokesperson for Bonta said the office is reviewing the latest letter. Representatives for Jennings and Musk did not immediately respond to requests for comment.
The case is expected to test not only the boundaries of corporate control in artificial intelligence but also the balance between commercial expansion and public-interest commitments in one of the world’s most strategically significant industries. - April 7, 2026
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