Musk For Profit Change Suit: OpenAI, Microsoft Seek Dismissal of Lawsuit

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Musk’s lawsuit argues that Hoffman and Templeton improperly served on both OpenAI’s and Microsoft’s boards, violating Section 8 of the Clayton Act, which prohibits executives from serving on competing companies’ boards. While both individuals have since stepped down, the FTC and DOJ have argued that their past roles could still be legally relevant.

California Attorney General Moves to Dismiss

California Attorney General Rob Bonta, whom Musk named as a defendant, also filed a motion to dismiss, arguing he is immune from suit under the Eleventh Amendment. Musk had requested Bonta to join his lawsuit as a plaintiff but, after receiving no response, added him as a defendant instead.

What’s Next? Court to Rule on Motions

With OpenAI, Microsoft, and Bonta all seeking dismissal, the case now awaits a federal judge’s decision on whether it will proceed or be thrown out. Meanwhile, the FTC’s ongoing investigation into OpenAI and Microsoft’s relationship could further influence the case.

Musk, who is represented by Marc Toberoff and Jaymie Parkkinen of Toberoff & Associates PC, has not yet responded to the motions to dismiss.