OpenAI countersues Musk as Altman feud escalates
OpenAI has filed a counter-lawsuit against Elon Musk accusing the Tesla and X chief of attempting a hostile takeover.
The claim, under “further unlawful and unfair action”, also cited orchestrating a campaign of harassment, designed to derail the AI company’s transition to a for-profit model.
The legal filing, submitted on 9 April, 2025, in a federal court in California, claims the richest man in the world has used various tactics – including public criticism, malicious campaigns, and legal harassment – to undermine OpenAI’s progress.
It states: “Through press attacks, malicious campaigns broadcast to Musk’s more than 200m followers on the social media platform he controls, a pretextual demand for corporate records, harassing legal claims, and a sham bid for OpenAI’s assets, Musk has tried every tool available to harm OpenAI.”
OpenAI, which Musk co-founded in 2015, is in the midst of a critical transition from its original nonprofit structure, to a for-profit entity, a shift necessary to secure a $40bn funding round.
Musk, who left the firm before it became a tech giant, has since launched his own firm, xAI, and has tried to prevent OpenAI from successfully making the transition.
The countersuit alleges that Musk’s actions, including a $97.4bn bid for OpenAI, were designed to harm the firm and secure an unearned competitive advantage for xAI.
His immediate refusal came with a swipe at his former business partner: “No thank you but we will buy X for $9.74bn if you want”, he wrote on Musk’s platform.
The filing further claims Musk’s acquisition offer lacked serious financial backing and was intended to disrupt OpenAI’s fundraising efforts.
Musk, however, defended his bid, stating that OpenAI’s board had not adequately considered it.
At the heart of the dispute is Musk’s alleged attempt to take control of OpenAI, with internal emails suggesting he pushed for a more traditional corporate structure, with himself at the helm.
OpenAI alleged Musk even proposed a structure where he would control the majority of the board and be named chief executive.
As the legal battle intensifies, OpenAI is seeking damages and an injunction to prevent Musk from any further interference.
The case is set for jury trial in 2026, but with the future of AI at stake, both companies are locked in a battle that could reshape the AI landscape.