Elon Musk Sues OpenAI Over Alleged Deception and Breach of Contract

Elon Musk's social media platform X has initiated a lawsuit against a coalition of advertisers, claiming that a coordinated boycott has cost the company billions in revenue and violated antitrust laws. Filed in a Texas federal court, the lawsuit targets the World Federation of Advertisers and major companies including Unilever, Mars, CVS Health, and Orsted. Musk alleges that the group's Global Alliance for Responsible Media initiative facilitated a significant advertising pause following his acquisition of Twitter in late 2022, which he claims was detrimental to the platform's financial health. In a video announcement, X CEO Linda Yaccarino stated that the lawsuit was partly based on evidence from a recent U.S. House Judiciary Committee hearing, which examined potential anticompetitive practices in online advertising. The lawsuit focuses on events shortly after Musk's takeover, rather than a later exodus of advertisers due to concerns over content moderation and hate speech on the platform. Musk has previously accused fleeing advertisers of "blackmail" and has expressed frustration over their departure. In a separate legal matter, Musk has also filed a lawsuit against OpenAI and its co-founders, alleging fraud and breach of contract. Musk claims he was misled into investing over $44 million in OpenAI under the premise of developing AI for the benefit of humanity, only to see the organization shift its focus towards profit. He is seeking damages and a court ruling to block OpenAI's licensing agreement with Microsoft, which has invested heavily in the company. OpenAI has previously rejected Musk's allegations, asserting that he sought control over the organization and left due to disagreements about its direction. The ongoing legal battles highlight Musk's contentious relationships with both advertisers and former business partners.