Sacramento: OpenAI has filed a countersuit against Elon Musk, accusing him of harassment and attempting to sabotage the company’s operations as it seeks to complete a critical transition to a for-profit model. The legal move, filed Wednesday in the U.S. District Court for the Northern District of California, asks a federal judge to prevent Musk from engaging in what the company describes as “unlawful and unfair action.”
The dispute is the latest development in a bitter fallout between OpenAI and Musk, who co-founded the AI startup in 2015 alongside CEO Sam Altman but departed the company prior to its meteoric rise in the AI sector. Musk, who launched a rival company, xAI, in 2023, has since openly opposed OpenAI’s structural shift and accused it of abandoning its nonprofit mission.
“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 said in its court filing.
OpenAI is in the midst of raising $40 billion in funding and must complete its transition to a for-profit “capped-profit” model by the end of the year to secure the investment. The company emphasized that Musk’s actions are not only damaging but also risk derailing its plans during a critical period in the AI race.
The countersuit asks the court to block further interference from Musk and to hold him accountable for the damage he has allegedly caused.
Musk’s legal team, however, pushed back against the allegations, referencing a $97.4 billion unsolicited takeover bid made earlier this year by a consortium led by Musk—a bid OpenAI rejected.
“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,” Musk’s attorney, Marc Toberoff, said in a statement to Reuters.
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OpenAI fired back on X, the social media platform owned by Musk, stating: “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.”
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
Tensions between Musk and OpenAI have been escalating since Musk filed a lawsuit in 2023 against OpenAI and Altman, accusing them of betraying the organization’s original mission to develop artificial intelligence for the benefit of humanity rather than for profit. OpenAI and Altman have firmly denied the accusations, asserting instead that Musk is attempting to undermine a direct competitor.
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The stakes are high. With ChatGPT at the center of a global AI boom, the outcome of the legal battle could shape the future of AI development, especially as OpenAI seeks to raise capital in an increasingly competitive and capital-intensive industry.
A jury trial is currently scheduled for spring 2026.
