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OpenAI says Elon Musk is waging a personal war to take over its AI empire

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Key Points

  • OpenAI has filed a countersuit against Elon Musk, accusing him of conducting a targeted campaign to damage the company via his Platform X, including defamation, abusive lawsuits and attempts to force internal documents.
  • According to OpenAI, Musk's bid to acquire company assets was a deceptive maneuver to gain control. The company is asking the court to prohibit Musk from further attacks and to hold him liable for any damages incurred.
  • The trial is scheduled to begin in spring 2026.

OpenAI has filed a countersuit against Elon Musk in the U.S. District Court for the Northern District of California, claiming the Tesla and xAI CEO is conducting a deliberate campaign to harm the company.

The AI company says Musk is using his X platform, which has more than 200 million followers, to run smear campaigns, file harassing lawsuits, and demand internal documents under false pretenses. OpenAI claims Musk's takeover bid for the company's assets was merely a ploy to gain control. The lawsuit asks the court to stop Musk's attacks and hold him liable for damages.

The dispute traces back to OpenAI's founding in 2015, when Musk was a co-founder before departing to later establish xAI. In March 2024, Musk sued OpenAI and CEO Sam Altman, claiming they had abandoned their original non-profit mission. OpenAI denies these allegations, characterizing Musk's actions as attempts to impede a competitor.

Legal battle could impact OpenAI's future

OpenAI maintains it will preserve its non-profit structure, stating it aims to become the "best-equipped nonprofit the world has ever seen." The company claims Musk's attacks are purely tactical moves to weaken OpenAI and gain technological control.

The stakes are particularly high for OpenAI, which needs to convert to a for-profit structure by year's end to complete a $40 billion funding round. The legal dispute with Musk could potentially disrupt this timeline.

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The court proceedings are set to begin in spring 2026. Meanwhile, Musk has strengthened xAI's position by acquiring Platform X, a move that could increase his AI company's market value.

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Source: Reuters