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.
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
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.
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.
