OpenAI has countersued Elon Musk, accusing him of harassment and seeking a federal court order to prevent further “unlawful and unfair actions” against the company.
The lawsuit is part of an ongoing dispute over OpenAI’s future structure, as it works to transition into a for-profit model to secure its $40 billion fundraising round by the end of the year.
The conflict traces back to 2015 when Musk and OpenAI CEO Sam Altman co-founded the company. Musk left OpenAI before it became a leader in the AI industry and later launched his own AI firm, xAI, in 2023.
Musk has since sought to block OpenAI’s transition to a for-profit model, leading to the current legal battle.
In its filing, OpenAI accused Musk of using a variety of tactics to undermine the company, including public attacks on social media, legal harassment, and an unsuccessful attempt to acquire OpenAI through a $97.4 billion bid earlier this year. OpenAI has asked the court to prevent Musk from making any further disruptive actions and to hold him accountable for the damage caused.
Musk’s legal team, however, has defended his actions, pointing to the unsolicited takeover bid and arguing that OpenAI’s board did not take it seriously. Musk’s lawyer, Marc Toberoff, stated that OpenAI’s rejection of the bid indicated their unwillingness to consider a legitimate offer.
A jury trial is scheduled for next spring. The case is significant as it will impact OpenAI’s ability to complete its transition to a for-profit organization, which the company sees as crucial to competing in the rapidly evolving and costly AI sector. Musk’s xAI firm recently acquired X, the social media platform he owns, further complicating the rivalry between the two tech giants.
