- OpenAI has countersued Elon Musk, accusing him of harassment and bad-faith legal tactics.
- The company claims Musk’s actions aim to block its for-profit shift and damage its mission.
- A jury trial is set for next spring, with both sides preparing for a major legal showdown.
The AI war just got personal! OpenAI has officially countersued Elon Musk, escalating a bitter legal clash between two of tech’s most powerful forces. In a Wednesday court filing, OpenAI accused Musk of harassment, bad-faith tactics, and a secret plot to take over the AI firm. The lawsuit claims Musk attempted to block OpenAI’s growth and redirect control for personal gain.
Tensions between Musk and OpenAI began after Musk filed a series of legal challenges to stop OpenAI from transitioning into a for-profit entity. Musk co-founded OpenAI in 2015 but left in 2018 after failing to secure majority control. He later formed xAI, a direct competitor in the artificial intelligence space.
According to OpenAI’s court filing, Musk pushed for OpenAI to become a for-profit in 2017. When denied controlling interest, he walked away and predicted failure. Now, OpenAI alleges Musk is using press attacks, smear campaigns, and legal harassment to damage their operations. Further, they cited Musk’s massive social media reach as part of the ongoing harm.
OpenAI’s legal team described a pattern of disruptive behavior, mentioning a $97.4 billion unsolicited takeover bid that Musk made earlier this year, but the offer was rejected. Musk’s attorneys argue the bid should have been taken seriously and claim OpenAI’s refusal reveals deeper issues with transparency and fair valuation.
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In their response, OpenAI asked the court to block Musk from making further legal or public attacks and held him accountable for damages already caused. The countersuit was filed in the Northern District of California, where Musk’s original case is pending.
The legal drama comes as OpenAI seeks to finalize a $40 billion fundraising round. That funding depends on completing its transition to a for-profit structure by the end of 2025. CEO Sam Altman insists this change is vital for survival in the AI race.
Meanwhile, Musk frames his lawsuit as a battle for AI ethics, claiming OpenAI has betrayed its mission to serve humanity. On the other hand, OpenAI argued that Musk’s actions stem from self-interest and competitive pressure. Both sides are expected to go to trial next spring, but till then, the future of OpenAI and the balance of power in AI hangs in the balance.
