The United States Justice Department and Federal Trade Commission (FTC) backed part of Elon Musk’s legal argument against OpenAI, raising concerns about board overlaps that could impact competition.

Musk’s lawsuit claims that OpenAI and Microsoft violated antitrust laws due to Reid Hoffman’s dual role on both boards from 2017 to 2023 and Deannah Templeton’s non-voting participation in OpenAI’s board from December 2023 to July 2024.

The agencies noted that even if questionable practices cease, defendants must prove they would not recur, though they did not address the legality of OpenAI’s shift to a for-profit entity.

Musk seeks a federal court order to stop OpenAI’s alleged “illegal” transition, with a hearing scheduled in Oakland, California.

The FTC is investigating OpenAI’s operations, including potential misrepresentation and conflicts, while OpenAI has rejected Musk’s claims, calling them baseless.