OpenAI filed a counterclaim against Elon Musk on Wednesday, accusing him of a sustained campaign of harassment and urging a federal judge to prevent Musk from taking any “unlawful and unfair actions” in the ongoing legal dispute over the company’s future structure. The dispute centers on OpenAI’s shift to a for-profit model, which Musk is attempting to block.
Musk, who co-founded OpenAI in 2015 alongside CEO Sam Altman, left the company before it rose to prominence in the tech world. Since then, Musk has launched his own AI firm, xAI, in 2023. Recently, he has sought to halt OpenAI’s transition to a for-profit organization, which is a critical step for the company to secure its $40 billion fundraising target by the end of the year.
In its legal filing, OpenAI described a series of actions by Musk intended to undermine the company, including negative press campaigns aimed at Musk’s 200 million social media followers, a baseless demand for corporate records, persistent legal challenges, and a failed attempt to acquire OpenAI’s assets. OpenAI is asking the court to bar Musk from further harmful actions and hold him accountable for the damage already caused.
A jury trial is set for next spring to address the ongoing legal battle.
Musk’s legal team responded by pointing to a $97.4 billion unsolicited takeover bid for OpenAI earlier this year, which the company rejected. Musk’s lawyer, Marc Toberoff, argued that OpenAI’s board should have taken the bid more seriously, suggesting that the company’s refusal to negotiate was motivated by its business plans, which would be disrupted by having to sell its assets at fair market value.
OpenAI fired back in a statement on Musk’s social media platform, X, accusing Musk of using his power to slow down OpenAI’s progress in the AI field and take control of its innovations for personal gain.
In addition to leading xAI, Musk also heads Tesla, the electric car manufacturer. Last year, he sued OpenAI and Altman, claiming the company had deviated from its original mission of developing AI for the public good, instead prioritizing corporate profit. OpenAI has denied these allegations, with Altman suggesting that Musk is attempting to hinder a competitor in the rapidly advancing AI industry.
The case ultimately revolves around OpenAI’s transition to a for-profit model, a move the company insists is essential for raising the funds needed to compete in the high-stakes AI race.
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