OpenAI has escalated its conflict with rivals Elon Musk and Meta by formally asking state attorneys general to investigate what it describes as coordinated "improper and anti-competitive behavior" designed to undermine the company's mission to develop artificial general intelligence (AGI). The letter, reviewed by multiple news outlets, alleges that Musk and Meta CEO Mark Zuckerberg are working together to damage OpenAI's reputation and competitive position through a campaign that includes detailed opposition research on OpenAI CEO Sam Altman .

What Specific Allegations Does OpenAI Make Against Musk and Meta?

According to reporting by CNBC and the Sacramento Bee, OpenAI's chief of global affairs Chris Lehane characterized the conduct as "highly questionable and sharply worthy of investigation." The letter references a recent New Yorker story that detailed extensive surveillance activities allegedly connected to Musk, including documentation of shell companies, personal contact information of Altman's associates, and even interviews conducted at gay bars about purported personal matters .

The New Yorker report documented that intermediaries connected to Musk had circulated dozens of pages of opposition research on Altman, with one intermediary claiming that Altman's flights and the parties he attended were being tracked. OpenAI's letter argues these attacks are designed to "take control of the future of AGI out of the hands of those who are legally obligated to pursue the mission of ensuring that AGI benefits all of humanity, and put it into the hands of competitors who lack mission-driven principles and spurn any responsibility for safety" .

The allegations also reference a conversation between Musk and Zuckerberg reported by Engadget last month. According to that reporting, Zuckerberg texted Musk offering to help with his efforts to cut the federal budget through DOGE (Department of Government Efficiency). Musk responded with a heart emoji, then asked Zuckerberg if he was "open to the idea of bidding on the OpenAI IP with me and some others." Zuckerberg suggested moving the conversation to a phone call .

Musk

How Does This Fit Into the Broader Legal Battle Between OpenAI and Musk?

This letter represents a significant escalation in the already contentious relationship between OpenAI and Musk. The Tesla and xAI founder is currently suing OpenAI for $134 billion, a lawsuit that OpenAI has consistently characterized as part of a long-term smear campaign. In January of this year, OpenAI issued a statement calling Musk's suit "baseless and a part of his ongoing pattern of harassment" .

The lawsuit is progressing toward trial in the Northern District of California, with jury selection scheduled to begin on April 27, according to CNBC. By filing this letter with state attorneys general, OpenAI appears to be opening a new front in the conflict, attempting to shift focus from the allegations against Altman in the New Yorker story to what it characterizes as illegal conduct by its competitors .

Steps to Understanding the AI Industry's Competitive Landscape

• Recognize the Stakes: The competition between OpenAI, Musk's xAI, and Meta's AI initiatives centers on who will control the development of artificial general intelligence, a technology that could reshape society and the economy
• Understand the Business Model Differences: OpenAI operates as a nonprofit-for-profit hybrid with a stated mission to ensure AGI benefits all of humanity, while Meta and xAI are pursuing AI development through different corporate structures and philosophies
• Track the Legal Developments: Multiple lawsuits and regulatory inquiries are now underway, making it important to follow court filings, attorney general responses, and trial proceedings to understand how these disputes will be resolved
• Monitor the Reputational Dimension: Beyond the legal battles, companies are engaging in public relations campaigns and media narratives that shape how the public and policymakers perceive each organization's trustworthiness and mission

The letter from OpenAI represents a strategic decision to involve state regulators in what has been primarily a private dispute. By asking California and Delaware attorneys general to investigate, OpenAI is attempting to frame the conflict not as a business rivalry but as a matter of public interest involving potential violations of antitrust and competitive conduct laws .

The timing of this letter is significant, coming as the New Yorker story has generated substantial media attention and raised questions about Altman's personal conduct and business practices. Rather than directly addressing those allegations, OpenAI has chosen to redirect the narrative toward what it characterizes as illegal behavior by competitors. This strategy suggests the company believes it can better defend itself by attacking its rivals' conduct than by defending Altman against the specific claims in the New Yorker investigation .

Neither xAI nor Meta has publicly responded to the allegations in OpenAI's letter. The outcome of any investigation by California and Delaware authorities could have significant implications for how AI companies compete and what regulatory oversight may be imposed on the industry as it races to develop increasingly powerful AI systems.