Exclusive | FTC, DOJ backs key allegations in Elon Musks antitrust case against Sam Altmans OpenAI, Reid Hoffman
The feds have sided with Elon Musk on a key pillar of his high-profile antitrust lawsuit against Sam Altman-led OpenAI, Microsoft and billionaire Reid Hoffman, The Post has learned.In November, Musk’s lawyers added Microsoft and Hoffman as defendants in an amended civil lawsuit targeting OpenAI.The lawsuit alleges that OpenAI teamed with Microsoft in an illegal effort to monopolize the AI market in violation of federal antitrust law and its own nonprofit mission.In the amended lawsuit, Musk’s lawyers alleged that the simultaneous service of Hoffman and another executive, Deannah Templeton, on the boards of OpenAI and Microsoft violated Section 8 of the Clayton Act – which prohibits so-called “interlocking directorates” in which a person serves as a board director at two competing firms.
In a joint statement of interest filed in California federal court on Friday, the Federal Trade Commission and Justice Department – which both have authority to enforce the Clayton Act – essentially state that Musk’s lawyers are correct to argue that the board maneuverings violated the law.It’s a legal windfall for Musk, who is seeking to void OpenAI’s license with Microsoft, force the parties to divest what are described as “ill-gotten” gains and require OpenAI to adhere to its original mission to develop safe AI for the public good.Musk claims that he and the public suffered irreparable harm as a result of their actions and also should be entitled to financial damages.
On the issue of interlocking directorates, the agencies argued that an executive’s resignation from the board isn’t necessarily enough to address potential violations of antitrust law under Clayton Act, according to details of the filing obtained by The Post.Officials accused of violating the law have a “heavy burden” to demonstrate that it is “absolutely clear that the allegedly wrongful behavior could not reasonably be expected to recur,” the joint filing says.Any attempt to a...