While they didn't support Musk's allegations directly, the feds added weight to his interpretation of antitrust law.

The U.S. Federal Trade Commission weighed in on Friday on Elon Musk's lawsuit seeking to block OpenAI's conversion to a public company, pointing out legal doctrines that could support his claim that OpenAI and Microsoft engaged in anticompetitive practices.

OpenAI launched a for-profit subsidiary a year later in order to raise outside capital, including more than $13 billion so far from its biggest backer, Microsoft. However, the non-profit entity, along with employees and investors, currently owns that for-profit subsidiary.

Musk dropped the lawsuit but filed another one against Altman and OpenAI, this time elevating his accusations to claim OpenAI worked with Microsoft, an investor, to create a monopoly. The billionaire also alleged the company violated its founding claim as a nonprofit by pursuing profit. OpenAI has denied the allegations.

His attorney argued they should provide a process for competitive bidding to determine fair market value of OpenAI's charitable assets to 'protect the public's beneficial interest,' as it is working on removing the control of its non-profit,

Indeed, Musk suggested that synthetic data — data generated by AI models themselves — is the path forward. “The only way to supplement [real-world data] is with synthetic data, where the AI creates [training data],” he said. “With synthetic data … [AI] will sort of grade itself and go through this process of self-learning.”

Elon Musk and his attorneys have asked judges in the states of California and Delaware to cause an auction that would force OpenAI to sell off a portion of its business, the Financial Times reported.