The escalating legal battle between OpenAI and Elon Musk has taken a dramatic turn, with OpenAI filing a harassment countersuit against the billionaire entrepreneur. This action comes in response to Musk's lawsuit earlier this year, where he claimed that OpenAI had abandoned its founding mission of developing AI for the benefit of humanity, instead prioritizing profits. OpenAI's countersuit accuses Musk of a sustained campaign intended to damage the company and regain control over its AI developments.
OpenAI's legal filing urges a federal court to block Musk from taking further "unlawful and unfair actions" and to hold him accountable for the alleged damage he has already inflicted. The company cites press attacks, legal pressure, and social media posts to Musk's vast following as tactics aimed at undermining its operations and reputation. It also points to Musk's demands for corporate records and attempted acquisition efforts as part of a broader scheme to derail OpenAI's progress and create a competing organization with xAI, the AI firm Musk launched in 2023.
According to OpenAI, Musk's actions are motivated by self-interest and a desire to impede the progress of a rival organization. They claim that Musk tried to gain control of OpenAI, and when that failed, he launched a campaign to undermine the company. This included a "sham bid" in February to acquire a controlling stake in the nonprofit for $97.4 billion, a figure that OpenAI claims was derived from a science fiction novel. OpenAI argues that this bid, along with other actions, forced them to divert significant resources, causing harm to the company.
Musk's initial lawsuit claimed breach of contract, alleging that OpenAI's transition from a non-profit to a for-profit entity violated its original agreement to develop AI for the public good and keep its code open. However, OpenAI has presented emails suggesting that Musk himself had previously supported the idea of a for-profit structure to better align incentives and secure funding. They argue that Musk's hostility only arose after OpenAI achieved significant success without his involvement, particularly with the launch of ChatGPT.
OpenAI also claims that Musk's actions are a repeat of past behavior. They allege that Musk demanded majority equity, control of the initial board of directors, and the CEO position when he was still involved with the company. When these demands were not met, he allegedly abandoned OpenAI, declaring that it would fail without him.
The countersuit also highlights the rivalry between OpenAI and xAI, Musk's AI firm. OpenAI argues that Musk's attempts to undermine OpenAI are driven by his desire to establish xAI as the leading AI innovator. This includes diverting AI talent and resources from Tesla to xAI.
Musk's legal team has defended his actions, arguing that his takeover bid was serious and that OpenAI's rejection reflects its unwillingness to consider fair market value for its assets. However, OpenAI maintains that Musk's bid lacked evidence of financing and that the listed investors had not conducted due diligence, further supporting their claim that it was a "sham."
The legal battle is scheduled to go to trial in spring 2026. The outcome could have significant implications for the future of AI development and the balance of power in the industry.
