OpenAI has filed a countersuit against Elon Musk, alleging a pattern of harassment and interference in the company’s operations. In legal documents submitted on Wednesday to the U.S. District Court for the Northern District of California, the artificial intelligence firm asked the court to block Musk from further “unlawful and unfair” actions as tensions escalate over the company’s future direction.
OpenAI, co-founded by Musk and current CEO Sam Altman in 2015, has evolved dramatically since its inception. Musk departed the organization in 2018 and has since launched his own AI company, xAI, in 2023. However, Musk has become increasingly critical of OpenAI’s transition from its nonprofit roots to a capped-profit structure, a shift the company insists is necessary to sustain innovation and secure funding.
To complete its ongoing $40 billion fundraising round, OpenAI must finalize this structural shift by the end of the year. The company argues that Musk’s actions are a calculated effort to derail that process.
“Through public attacks, misleading narratives aimed at his massive online audience, legal maneuvers disguised as legitimate concerns, and even a so-called takeover offer, Musk has used every means possible to undermine OpenAI,” the company stated in its legal filing. It further accused Musk of using his influence on X, the social media platform he owns, to launch campaigns that damage OpenAI’s reputation and operations.
In response, OpenAI is seeking a court order to prevent Musk from continuing these disruptive efforts and is also requesting that he be held accountable for harm already caused.
The legal battle stems from Musk’s assertion that OpenAI has abandoned its original mission to develop artificial intelligence that benefits humanity rather than serving profit-driven motives. In a lawsuit filed earlier this year, Musk accused OpenAI and Altman of betraying their founding principles, a claim the company vehemently denies.
OpenAI contends that transitioning to a capped-profit model was a strategic move to attract the capital needed to remain competitive in the high-stakes world of artificial intelligence development. The company maintains that its commitment to safety, transparency, and ethical research remains intact.
Meanwhile, Musk’s legal representatives point to a rejected offer from a group of investors led by Musk to acquire OpenAI’s assets. The unsolicited bid, reportedly valued at $97.4 billion, was dismissed by OpenAI. Musk’s lawyer, Marc Toberoff, criticized the decision, saying, “If the board had truly considered the proposal in good faith, they would have seen its seriousness. It’s revealing that paying fair market value for assets is now seen as interference.”
OpenAI views the takeover bid as disingenuous, describing it as a “sham offer” designed more to disrupt than to genuinely invest. In a post shared on X, the company wrote, “Elon’s continuous actions aren’t about principle — they’re bad-faith moves aimed at slowing us down and grabbing control of leading AI innovations for personal gain.”
This ongoing conflict arrives at a crucial time for both parties. Musk’s AI venture, xAI, recently completed a deal allowing co-investors in X to share in its value, further intertwining his AI ambitions with his broader business empire.
Despite the noise, OpenAI insists that its goals remain clear: scale responsibly, attract key investment, and build advanced AI systems that can be safely deployed. The company views Musk’s interventions as a distraction from this mission and is asking the court to draw a firm boundary.
The case is scheduled to move to a jury trial next spring. With AI quickly reshaping industries worldwide, the outcome of this legal battle could have far-reaching consequences — not just for OpenAI and Musk, but for the entire artificial intelligence ecosystem.
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