Islamabad, Apr 10, 2025: In a dramatic move, OpenAI countersued Elon Musk on Wednesday, accusing the tech mogul of a consistent pattern of harassment.
The lawsuit seeks to stop Musk from continuing his “unlawful and unjust” actions against OpenAI, as the company navigates a legal dispute regarding its future structure.
This case has emerged against the backdrop of OpenAI’s ongoing transition, which could shape the future of artificial intelligence.
Musk and OpenAI’s CEO Sam Altman co-founded OpenAI in 2015, but Musk left the company before it gained global prominence.
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Over the past year, Musk, who launched his own AI company xAI in 2023, has repeatedly attempted to block OpenAI’s shift to a for-profit model.
This has culminated in the current legal conflict. OpenAI must finalize its transition by the end of the year in order to secure a $40 billion fundraising round, a critical move for the company’s future growth.
In its legal filing, OpenAI accuses Musk of launching a series of aggressive and misleading actions, including public press attacks, a malicious campaign targeted at his 200 million social media followers, demands for corporate records, legal harassment, and even an insincere attempt to acquire OpenAI’s assets.
“Musk has used every tactic at his disposal to undermine and harm OpenAI,” the company said in its filing with the U.S. District Court for the Northern District of California.
OpenAI has requested the court to stop Musk from any further disruptive actions and to hold him accountable for the damage already inflicted.
Both parties are preparing for a jury trial set to begin in spring 2026. In defense, Musk’s legal team pointed to a $97.4 billion unsolicited takeover offer made earlier this year by a Musk-led consortium, which was rejected by OpenAI.
“Had OpenAI’s board properly evaluated this bid, they would have realized its seriousness,” said Musk’s lawyer Marc Toberoff. “It is clear that paying fair market value for OpenAI’s assets allegedly ‘interferes’ with their future plans.”
OpenAI, in turn, took to X (formerly known as Twitter, now owned by Musk), calling out his relentless actions as bad-faith tactics designed to slow down OpenAI’s progress and seize control of AI innovations for his own personal benefit.
Musk’s AI firm, xAI, recently acquired the social media platform X, valuing it at $33 billion, and effectively linking the value of his AI ventures with that of his social media empire.
Last year, Musk sued OpenAI and Altman, accusing them of deviating from the company’s original mission to develop AI for the betterment of humanity, rather than for corporate profit.
Musk did not respond to OpenAI’s latest filing, but the tension between the two tech giants continues to mount.
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The core of this dispute lies in OpenAI’s transition to a for-profit entity. OpenAI has argued that this shift is essential for securing necessary capital and competing in the increasingly costly and competitive AI race.
As both parties brace for a legal showdown, the future of OpenAI’s mission and its influence on the AI landscape hangs in the balance.
OpenAI Countersues Elon Musk, asserting that his actions are hindering their progress.The resolution of this legal battle could have far-reaching implications for the AI industry, especially as OpenAI moves closer to becoming a major player in the global AI market.
