1 week Ago By Priya Singh
The escalating legal feud between OpenAI and its co-founder Elon Musk took a new turn as the company, along with CEO Sam Altman and other defendants, filed a countersuit accusing Musk of harassment. The dispute centers around OpenAI’s shift to a for-profit model—something Musk, who left the company before its rise to prominence, has publicly opposed. Now leading his own AI venture, xAI, Musk is being accused of launching a pattern of “unlawful and unfair” actions against OpenAI, prompting the firm to seek a court order to block further interference.
He’s been spreading false information about us. We’re actually getting ready to build the best-equipped nonprofit the world has ever seen – we’re not converting it away. More info here: https://t.
co/oCHU0MUAoL — OpenAI Newsroom (@OpenAINewsroom) April 9, 2025 In a court filing, OpenAI accused Elon Musk of launching a harmful campaign against the company through public attacks, legal pressure, and a bid for its assets, warning that his actions threaten its mission and public trust. The company urged the court to block further interference and hold Musk accountable for the damage caused. ALSO SEE: OnePlus Red Rush Days Sale: Discounts On OnePlus 13 Series, Nord 4, Buds Pro 3 Notably, the two sides are scheduled to face off in a jury trial next spring.
Elon Musk’s legal team defended a $97.4 billion takeover bid for OpenAI made earlier this year, criticizing the company for rejecting what they called a serious offer. Musk's lawyer argued the board failed to fulfill its duty by not properly considering the proposal, claiming that paying fair market value shouldn’t be seen as interference.
OpenAI, in turn, accused Musk of using bad-faith tactics to disrupt the company and gain control of its AI advancements for personal gain. Elon’s never been about the mission. He’s always had his own agenda.
He tried to seize control of OpenAI and merge it with Tesla as a for-profit – his own emails prove it. When he didn’t get his way, he stormed off. Elon is undoubtedly one of the greatest entrepreneurs of our.
..— OpenAI Newsroom (@OpenAINewsroom) April 9, 2025 For the unversed, Musk sued OpenAI and Sam Altman last year, claiming the company had abandoned its original nonprofit mission to prioritize corporate profits.
OpenAI and Altman denied the allegations, with Altman arguing that Musk is attempting to hinder a rival. Central to the case is OpenAI’s shift to a for-profit model—an essential move for raising $40 billion in funding and staying competitive in the costly AI landscape. The company must complete this transition by year-end to secure the full investment.
.
