OpenAI files countersuit against Elon Musk, accusing him of harassment
OpenAI files countersuit against Musk, citing continued harassment
OpenAI has filed a countersuit against Elon Musk, accusing him of a sustained pattern of harassment and unlawful actions that have harmed the company.
In its court filing on Wednesday, OpenAI requested a federal judge to intervene and stop Musk from engaging in any further "unlawful and unfair" actions as part of an ongoing lawsuit over the company’s future structure. The legal battle stems from Musk’s objections to OpenAI’s transition to a for-profit model, reports Reuters.
Background of the Dispute
Musk, who co-founded OpenAI in 2015 alongside CEO Sam Altman, parted ways with the company before it became the AI powerhouse it is today. Since then, Musk has been vocal in his opposition to OpenAI’s business decisions, particularly its transition toward becoming a for-profit organization.
This shift is essential for OpenAI to secure its $40 billion fundraising round by the end of this year. Musk’s legal efforts to derail this transition have escalated, including public attacks on social media, aggressive legal claims, and a failed attempt to acquire OpenAI’s assets.
"Through press attacks, malicious campaigns broadcast to Musk's more than 200 million followers on the social media platform he controls, a pretextual demand for corporate records, harassing legal claims, and a sham bid for OpenAI's assets, Musk has tried every tool available to harm OpenAI," the company said in its filing. OpenAI also demanded that Musk be held accountable for the damages he has already caused.
Musk’s Response
In defense, Musk’s legal team pointed to a $97.4 billion unsolicited takeover bid earlier this year, which was rejected by OpenAI’s board. Musk’s lawyer, Marc Toberoff, argued that OpenAI had not properly considered the bid, suggesting it would have been beneficial for the company. "Had OpenAI’s Board genuinely considered the bid as they were obligated to do, they would have seen how serious it was," Toberoff stated.
Musk’s social media platform, X, has been a key battleground in the dispute. OpenAI accused Musk of using his influence to slow down the company’s progress and seize control of AI innovations for personal gain. In response, Musk’s xAI, which acquired X in a recent deal, aims to strengthen his AI interests and share the value of his artificial intelligence firm with co-investors.
The lawsuit has broader implications for the AI industry, particularly OpenAI’s ability to fundraise and compete in the fast-paced and costly race for artificial intelligence dominance. At stake is whether OpenAI can secure its future funding and maintain its focus on innovation in the face of legal pressure from a high-profile competitor. A jury trial is set to begin in spring 2026.
Reminder, OpenAI, the company behind the widely used artificial intelligence tool ChatGPT, has completed a record-breaking funding round, raising $40 billion from investors including SoftBank Group Corp.
