On Wednesday, OpenAI countersued Elon Musk, accusing him of using harassment tactics to slow the company’s progress and disrupt its plans for growth, including a contentious bid for control.
What Happened: In the lawsuit, OpenAI alleges that Musk’s tactics include press attacks, legal harassment, and an unsolicited bid for the company’s assets.
The filing states, “Musk has tried every tool available to harm OpenAI,” and asks the court to stop him from taking further “unlawful” actions, reported Reuters.
The dispute centers on OpenAI’s transition to a for-profit model, which is crucial for its current $40 billion fundraising round. OpenAI aims to complete this transition by the end of the year, but Musk has attempted to block it.
See Also: OpenAI’s Sam Altman Looks To Raise Funds From Abu Dhabi’s MGX Amid Increased Competition: Report
In a post on X, OpenAI added that Musk’s actions were “bad-faith tactics to slow down OpenAI and seize control of the leading AI innovations for his personal benefit.”
Elon’s nonstop actions against us are just bad-faith tactics to slow down OpenAI and seize control of the leading AI innovations for his personal benefit. Today, we counter-sued to stop him.
— OpenAI Newsroom (@OpenAINewsroom) April 9, 2025
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Why It Matters: OpenAI was co-founded in 2015 by 11 people, including Musk and current CEO Sam Altman. However, Musk parted ways with the company in 2018, prior to its rise as a major tech player following the release of ChatGPT.
In 2023, Musk founded his separate artificial intelligence company, xAI, and has since opposed OpenAI’s shift toward a for-profit structure.
Earlier this year, OpenAI’s board rejected a $97 billion acquisition proposal from Musk, which was seen as an attempt to slow down a competitor.
Meanwhile, OpenAI has also finalized a historic $40 billion funding round, elevating its valuation to $300 billion. This funding is backed by major players like Microsoft Corp. MSFT and SoftBank Group SFTBF SFTBY.
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