financetom
Business
financetom
/
Business
/
FTC weighs in on Musk's lawsuit against OpenAI
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
FTC weighs in on Musk's lawsuit against OpenAI
Jan 10, 2025 2:00 PM

(Reuters) - The U.S. Federal Trade Commission weighed in on Friday on Elon Musk's lawsuit seeking to block OpenAI's conversion to a public company, pointing out legal doctrines that could support his claim that OpenAI and Microsoft ( MSFT ) engaged in anticompetitive practices.

While it did not officially support either side, the FTC offered legal analysis that could aid Musk at a Tuesday hearing in Oakland, California. Musk co-founded OpenAI and owns AI startup xAI.

A spokesperson for Microsoft ( MSFT ) declined to comment. A spokesperson for OpenAI did not immediately respond to a request for comment.

The FTC is separately looking into partnerships in AI, including between Microsoft ( MSFT ) and OpenAI, investigating potentially anticompetitive conduct at Microsoft ( MSFT ) and probing whether OpenAI violated consumer protection laws.

Musk alleges OpenAI violated antitrust law by making investors agree not to invest in rival artificial intelligence firms, and by sharing board members with Microsoft ( MSFT ), which is also a defendant in the lawsuit.

OpenAI has said the board member claims are moot, because Microsoft ( MSFT ) board member Reid Hoffman, who was on OpenAI's board, and Microsoft ( MSFT ) executive Deannah Templeton, who had an observer seat, are no longer affiliated with it.

But even after they leave boards, directors could still have sensitive competitive information, the FTC said. Board members who only have observer status are not exempt from the law, the agency said in its brief.

Musk also claims that OpenAI facilitated a group investor boycott against its rivals. Such claims are viable even when the organizer of the boycott is not a member, the FTC said.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Robinhood reports quarterly profit on retail trading strength
Robinhood reports quarterly profit on retail trading strength
Oct 30, 2024
Oct 30 (Reuters) - Brokerage Robinhood reported a third-quarter profit on Wednesday, driven by robust equities and crypto trading volumes. The company's profit was $150 million, or 17 cents per share, in the three months ended Sept. 30, compared with a loss of $85 million, or 9 cents per share, a year earlier. ...
DoorDash forecasts strong fourth quarter, bets on demand for online delivery
DoorDash forecasts strong fourth quarter, bets on demand for online delivery
Oct 30, 2024
(Reuters) - DoorDash ( DASH ) forecast fourth-quarter core profit above estimates on Wednesday, as the online delivery firm bets on more consumers using the platform to order groceries to beauty products during the holiday period. The company also posted a profit for the first time since going public in late 2020 and beat quarterly revenue estimates. With the online...
Bunge reports quarterly profit beat on improved sale volumes
Bunge reports quarterly profit beat on improved sale volumes
Oct 30, 2024
(Reuters) - Grain trader and processor Bunge beat Wall Street expectations for third-quarter profit on Wednesday, helped by higher sales volumes. Bunge and rival Archer-Daniels-Midland ( ADM ) had expected increased profitability due to a spike in crop sales by U.S. farmers, which provided cheaper soybean ownership and helped utilize any excess manufacturing capacity. In July, Bunge had forecast an...
--Meta Guides For Q4 Revenue of $45-$48 Billion, vs CIQ Analyst Consensus of $46.2 Billion
--Meta Guides For Q4 Revenue of $45-$48 Billion, vs CIQ Analyst Consensus of $46.2 Billion
Oct 30, 2024
04:08 PM EDT, 10/30/2024 (MT Newswires) -- Price: 606.90, Change: +13.62, Percent Change: +2.30 ...
Copyright 2023-2026 - www.financetom.com All Rights Reserved