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OpenAI has written to the Attorneys General of California and Delaware requesting an investigation into Musk's "anti-competitive behavior."

According to 1M AI News monitoring, OpenAI's Chief Strategic Officer Jason Kwon on Monday wrote to the Attorneys General of California and Delaware urging both states to investigate Musk's "unfair and anti-competitive practices" in obstructing OpenAI's transition to a for-profit entity. Kwon stated in the letters that Musk "repeatedly attempted to seize control of the nonprofit organization for personal gain, but all such attempts have failed," with the intention of shaping the future of artificial intelligence.

Several weeks after this letter was sent, Musk is set to face OpenAI and Microsoft in court. Musk accuses OpenAI of betraying its founding mission as a public charity by planning to transition to a for-profit company after accepting billions of dollars from Microsoft, seeking damages of up to $134 billion. Kwon warned the two states that this lawsuit could jeopardize the agreement OpenAI reached with them in October last year during its transformation. In that restructuring, OpenAI ceded 27% of its equity to Microsoft while retaining control over its for-profit operations.

Kwon wrote, "Musk's lawsuit is not just about OpenAI; it is about whether there is room in this industry for a company bound by mission and the October agreement, or whether this territory must be ceded to Musk and his cohorts."

A spokesperson for California Attorney General Rob Bonta stated that they are reviewing the letter. Representatives of Delaware Attorney General Kathy Jennings and Musk's lawyers did not immediately respond to requests for comment. Musk co-founded OpenAI in 2015 with Altman and others, resigned from the board in 2018, and established the competitor xAI in 2023. Last year, OpenAI rejected Musk's unsolicited $974 billion offer to acquire its nonprofit organization assets.

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