Court Rejects Musk's Attempt to Dismiss OpenAI Lawsuit Alleging Harassment and Breach of Contract.
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A U.S. District Judge has rejected Elon Musk's attempt to dismiss a harassment lawsuit filed against him by OpenAI. The ruling allows OpenAI to proceed with its claims that Musk engaged in a "years-long harassment campaign" against the company. U.S. District Judge Yvonne Gonzalez Rogers determined that OpenAI's counterclaims were sufficient to proceed as part of the original lawsuit filed by Musk against OpenAI and its CEO, Sam Altman, in August 2024. The case is set to go before a jury in March 2026.

The legal battle began when Musk sued OpenAI and Altman, alleging that they had abandoned the company's original mission of developing AI for the public good, instead prioritizing profit through a partnership with Microsoft. Musk claimed that this shift violated their founding agreement.

OpenAI responded with counterclaims in April, accusing Musk of persistent attacks in the press and on his social media platform X, demands for corporate records, and a "sham bid" to acquire the company's assets. They allege that Musk's actions were a deliberate attempt to undermine OpenAI and gain a competitive advantage for his own AI startup, xAI. OpenAI claims Musk has used lawsuits and public attacks to sabotage its business.

Judge Rogers ruled that Musk's press statements, social media posts, legal actions, and attempts to buy OpenAI provided sufficient legal grounds for the case to proceed. OpenAI argues that Musk's offer to buy the company for $97.4 billion in February was a "commercial tactic" to interfere with OpenAI's business and distract its employees and potential investors.

OpenAI's filing states that Musk has launched several forms of harassment against the company, including "press attacks" and "malicious campaigns broadcast to Musk's more than 200 million followers on the social media platform he controls". They are seeking damages and an injunction to prevent Musk from further interfering with their economic relationships.

Musk, who co-founded OpenAI in 2015, left the organization in 2018 following disagreements over its direction. Since then, he has been a vocal critic of OpenAI's shift towards a for-profit model, arguing that it has compromised the company's original mission.

The dispute has also involved accusations of antitrust violations. Musk has accused Apple of blocking his AI app Grok from topping App Store rankings in favor of ChatGPT, while Altman has criticized Musk for manipulating X to benefit his companies and harm competitors.

Despite the ongoing legal battle, OpenAI has stated that it will remain focused on product development rather than engaging in public disputes.


Written By
Priya Patel is a seasoned tech news writer with a deep understanding of the evolving digital landscape. She's recognized for her exceptional ability to connect with readers personally, making complex tech trends relatable. Priya consistently delivers valuable insights into the latest innovations, helping her audience navigate and comprehend the fast-paced world of technology with ease and clarity.
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