OpenAI files a countersuit against Elon Musk,
Tesla CEO Elon Musk has sought to obstruct the ChatGPT developer’s transition to a for-profit structure. In retaliation, OpenAI filed a countersuit against Musk on Wednesday, accusing him of a pattern of harassment and asking a federal judge to bar him from engaging in any “further unlawful and unfair actions” against the organization as part of a legal dispute over its future direction. Musk co-founded OpenAI in 2015 with CEO Sam Altman but left the organization before it became widely recognized in the tech industry.
More recently, Musk established his own AI company, xAI, in 2023 and has attempted to prevent OpenAI from adopting a profit-driven model, resulting in the current legal battle. To secure the full $40 billion in its ongoing fundraising round, OpenAI needs to finalize this transition by the end of the year.
In its court filings, OpenAI accused Musk of using tactics such as public criticism, coordinated campaigns aimed at his substantial social media followers, frivolous requests for corporate documents, harassment through legal actions, and a questionable bid to acquire OpenAI’s assets as means to destabilize the company. OpenAI is urging the court to stop Musk from taking further actions against them and hold him liable for the damage he has already caused.
The two parties are scheduled for a jury trial in the spring of next year. Musk’s legal team highlighted a $97.4 billion unsolicited takeover proposal from a consortium he leads, which OpenAI rejected. Musk’s attorney, Marc Toberoff, remarked, “If OpenAI’s Board had genuinely considered the proposal, as they were required to do, they would have acknowledged its validity.
It’s telling that the necessity to remunerate fair market value for OpenAI’s assets supposedly ‘interferes’ with their business plans.” In a post on X, the platform owned by Musk, OpenAI claimed, “Elon’s ongoing actions against us are simply bad-faith strategies aimed at obstructing OpenAI and seizing control of leading AI innovations for his own advantage.”
Last month, Musk’s xAI acquired X in a deal valuing the social media company at $33 billion, allowing his AI firm to share financial benefits with co-investors in X. Previously, Musk had filed a lawsuit against OpenAI and Altman, alleging that they strayed from their original mission of developing AI for humanity’s benefit rather than for corporate profit.
Musk did not respond to requests for comment regarding OpenAI’s recent legal filings. OpenAI and Altman have dismissed Musk’s claims, arguing instead that he is attempting to undermine a competitor. The lawsuit focuses on OpenAI’s shift to a for-profit model, which the startup insists is essential for securing additional capital and remaining competitive in the expensive AI sector.
