1 week Ago By [email protected] (Republic World)
Updated April 10th 2025, 08:20 IST OpenAI has countersued Elon Musk, accusing him of harassment and attempting to disrupt its shift to a for-profit model OpenAI on Wednesday countersued Elon Musk, accusing the billionaire entrepreneur of a coordinated campaign to disrupt the company’s transition to a for-profit model. Filed in the US District Court for the Northern District of California, the countersuit marks a dramatic escalation in a legal feud between the ChatGPT creator and its co-founder. Musk, who left OpenAI in 2018 and launched his own AI venture, xAI, in 2023, originally sued OpenAI earlier this year.
He alleged the company had strayed from its founding mission of developing artificial general intelligence (AGI) for the benefit of humanity. OpenAI’s counterclaim alleges that Musk has instead weaponised his influence, including on X (formerly Twitter), to damage the company and benefit his competing interests. “Harassing Legal Claims” and “Sham Bid” In the filing, OpenAI stated, “Through press attacks, malicious campaigns broadcast to Musk's more than 200 million 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.
” The company has asked the judge to prevent Musk from further interference and hold him accountable for what it calls "the damage he has already caused." $97.4 Billion Bid Sparks Controversy Central to the dispute is a $97.
4 billion unsolicited takeover bid Musk made earlier this year through a consortium, which OpenAI rejected. Musk’s legal team responded sharply to the countersuit, arguing that OpenAI failed in its fiduciary duty by not considering the offer seriously. “Had OpenAI's Board genuinely considered the bid as they were obligated to do they would have seen how serious it was.
It's telling that having to pay fair market value for OpenAI's assets allegedly 'interferes' with their business plans,” said Musk’s lawyer, Marc Toberoff, in a statement to Reuters. Read More Now, ChatGPT Is Being Misused to Create Fake Aadhaar, PAN Cards: Here’s How to Stay Safe from Fraud xAI and X: A Strategic Play Last month, Musk’s xAI acquired X in a deal that valued the social media platform at $33 billion, strategically linking the AI firm with his existing business empire. The structure enables co-investors in X to share in the future value of xAI.
OpenAI, in a post on X, accused Musk of ulterior motives: “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.” Jury Trial Set for Next Spring The legal showdown is slated for a jury trial in spring 2026. With billions at stake and AI development at a critical juncture, the case could redefine not just the governance of OpenAI, but the competitive landscape of the broader artificial intelligence industry.
(With Inputs From Reuters) Published April 10th 2025, 08:18 IST.
