FILE PHOTO: US antitrust enforcers point to legal principles supporting Musk’s claim that OpenAI, Microsoft engaged in anti-competitive practices. | Photo credit: Reuters

US antitrust enforcers on Friday weighed in on Elon Musk’s lawsuit seeking to block OpenAI’s conversion to a public company, pointing to legal principles that support his claim that OpenAI AI and Microsoft are engaged in competitive practices.

The U.S. Federal Trade Commission and Department of Justice were not commenting on the case, but offered legal analysis on aspects of the case ahead of Tuesday’s hearing in Oakland, California. Musk co-founded OpenAI and owns AI startup xAI.

A Microsoft spokesman declined to comment.

An OpenAI spokesperson cited a court document where the company said the lawsuit lacked evidence and amounted to harassment.

“The DOJ and FTC’s involvement is a sign of how seriously regulators take OpenAI and Microsoft’s misconduct,” said Mark Tobroff, Musk’s attorney.

The FTC is separately reviewing partnerships in AI, including between Microsoft and OpenAI, investigating possible anticompetitive practices at Microsoft and examining whether OpenAI violated consumer protection laws. Who is

Musk alleges that OpenAI violated antitrust laws by persuading investors not to invest in rival artificial intelligence firms, and by sharing board members with Microsoft, according to the lawsuit. There is also a defendant.

OpenAI has said the board member’s claims are false, as Microsoft board member Reid Hoffman, who was on OpenAI’s board, and Microsoft executive Diana Templeton, who had an observer seat, are now affiliated with it. are not

Even after leaving the board, directors may have sensitive competitive information, the FTC and DOJ said. Board members who only have observer status are not exempt from the law, officials said in their brief.

Musk also claimed that OpenAI facilitated group investor boycotts against its competitors. The FTC and DOJ have held that such claims are actionable even when the organizer of the boycott is not a member.