• Tech Tech

California lawsuit accuses Google, OpenAI, Anthropic, and xAI of an unlawful AI slowdown pact

If competition weakens, users could end up facing higher subscription costs.

A gavel rests on a wooden surface, with a blurred background of legal books and scales.

Photo Credit: iStock

Google, OpenAI, Anthropic, and SpaceXAI are the targets of a new California lawsuit that said the companies worked together to restrain the speed of artificial intelligence progress.

The case comes amid a broader debate over how quickly AI should advance — and who gets to shape that timeline.

Here's what to know

According to The Independent, plaintiffs filed the case in federal court in California's Northern District, accusing the companies of breaking federal antitrust law through shared "deceleration strategies."

Four people who pay for ChatGPT, Claude, Grok, or Gemini are listed as plaintiffs, and their attorneys are seeking to turn the case into a proposed nationwide class action on behalf of subscribers.

The complaint argues that customers who pay monthly for AI services may get less for their money if top competitors collectively slow technical progress instead of competing freely.

Much of the lawsuit centers on a Sept. 12 essay in which Anthropic CEO Dario Amodei urged the industry to prioritize stronger safety measures over faster AI advancement. The filing said Google DeepMind CEO Demis Hassabis, OpenAI CEO Sam Altman, and SpaceXAI's Elon Musk later voiced public support for that position the same day.

Without government regulation, the AI companies' actions could be seen as a truce against rushing too fast at the expense of safety. Still, Nick Rowley, the plaintiffs' lead attorney, explained some of the concern around this regulation coming through a private agreement between private companies: "AI will quickly spin out of human control and could kill us all if we allow AI safety and protocol ... to be controlled by private self-serving agreements between the world's most powerful 'for profit' technology companies."

More background

The case sits at the intersection of two major concerns surrounding AI: whether companies are moving too fast for public safety and whether a small group of dominant firms holds too much power over the technology's future.

The news comes as U.S. Rep. Ro Khanna recently called for an FDA-like federal regulatory agency for AI, which could address the concerns raised in this antitrust lawsuit.  

AI tools are increasingly being built into workplace software, search engines, education platforms, and customer service systems. If competition weakens, users could face higher subscription costs, slower improvements, or fewer meaningful options.

At the same time, critics of rapid AI deployment have raised concerns about misinformation, security risks, and other unintended social consequences. That leaves regulators, companies, and consumers weighing AI's potential benefits against the real-world costs of how the technology is developed and deployed.

What's being done?

The lawsuit is one avenue for testing where legitimate safety coordination ends and unlawful market behavior begins. If the case moves forward, it could bring greater scrutiny to how major AI firms communicate about pace, safety, and competition.

Amodei acknowledged in his essay that antitrust concerns could come up, writing that cross-lab conversations would be easier if the U.S. government chose to mediate "or at least enable" them. He added that officials would not need to take part directly, but would have to "issue a narrow waiver for certain kinds of safety conversations."

Altman said on social media that OpenAI supports a "federal framework that sets consistent safety requirements." 

He added, "We do not believe we need to wait for an anti-trust exemption or legislation to begin the work of providing this confidence."

Where can I learn more?

These stories look at AI lawsuits, regulation efforts, and bubble warnings.

• Copyright complaints against major AI companies threaten to upend the future of the U.S. industry.

• Anthropic CEO Dario Amodei said binding U.S. rules are now needed for AI.

• Google's Sundar Pichai warns an AI bubble burst would spare no company.

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.

Cool Divider