OpenAI countersues Elon Musk, alleging harm to company
- OpenAI has countersued Elon Musk, alleging he engaged in bad-faith tactics to harm the organization.
- Musk previously sued OpenAI claiming it breached its nonprofit commitments and sought control over the company.
- The legal dispute highlights the ongoing tension and competition in the fast-evolving AI landscape, particularly surrounding OpenAI's success.
In March 2025, OpenAI filed a countersuit against Elon Musk in the U.S. District Court in California in response to Musk's ongoing legal challenges against the company. Musk has sought to prevent OpenAI from transitioning into a for-profit entity and accused it of breaching its original nonprofit principles. OpenAI alleges Musk's actions, which include a $97.4 billion unsolicited bid and various public attacks, constitute unfair competition and interference with its relationships with investors and customers. The lawsuit asserts that Musk's actions are driven by personal motives and are intended to undermine OpenAI because of its success with products like ChatGPT. Musk's legal confrontation with OpenAI dates back to more than a year ago. He originally sued the organization over breach of contract, claiming it betrayed its founding aims as a nonprofit research lab. OpenAI's countersuit highlights Musk's past relationship with the organization, noting that despite helping to establish it, he attempted to exert control over it and later exited when his demands were not met. The lawsuit claims Musk's motivations stem from jealousy of OpenAI's rapid growth and success in the artificial intelligence sector, leading him to launch a competitive venture through his company xAI. According to OpenAI, Musk's aggressive legal maneuvers are designed to create disruptions that serve his interests rather than those of the public or the technology community. The lawsuit highlights how Musk has utilized his influence on social media to propagate misinformation and conduct press campaigns, which OpenAI claims have harmed its reputation and operations. The company insists that it is resilient in face of these tactics and maintains strong support from its employees, investors, and business partners. The countersuit seeks a judicial order to halt Musk’s alleged unlawful tactics and hold him accountable for the damage purportedly caused by his interference. OpenAI's leadership asserts that the public perception of Musk as a transformative tech figure must be scrutinized in light of his efforts to disrupt a competitor's growth and capitalize on AI advancements strictly for his benefit. The court proceedings stemming from these tensions are slated for jury trial, with preliminary motions taking place in the coming weeks.