OpenAI Strikes Back in Legal Clash with Elon Musk
OpenAI has filed a counterclaim against Elon Musk, accusing him of waging an ongoing campaign to damage the organization’s reputation and operations.
The filing urges a federal judge to step in and block Musk from engaging in what OpenAI describes as “unlawful and unfair action” against the AI company he helped launch.
The dispute centers on OpenAI’s strategic direction and its transition to a capped-profit model, a shift the company considers crucial for securing a $40 billion funding round by the end of the year.
Musk, who left the company years before its rise to prominence, has since established his own AI firm, xAI, and become an outspoken critic of OpenAI’s current path.
In a legal response filed in California’s Northern District, OpenAI alleges that Musk is deliberately undermining the company’s work.
“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 stated in its filing.
OpenAI is seeking legal protection to halt Musk’s alleged interference and is calling for accountability for what it calls the “damage he has already caused.” A jury trial is expected to begin next spring.
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Musk’s Acquisition Offer Sparks New Tensions
Tensions escalated earlier this year when Musk’s team made a $97.4 billion offer to acquire OpenAI—an offer the company ultimately rejected. Musk’s attorneys argue that the board failed to properly consider the proposal.
“Had OpenAI’s board genuinely considered the bid as they were obligated to do, they would have seen how serious it was,” said Marc Toberoff, Musk’s lawyer. “It’s telling that having to pay fair market value for OpenAI’s assets allegedly ‘interferes’ with their business plans.”
OpenAI countered on X, the social platform now 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.”
Meanwhile, xAI, Musk’s AI company, recently completed a $33 billion deal to acquire X, expanding its footprint in the digital and AI sectors. Musk, who also heads Tesla, originally filed a lawsuit against OpenAI last year, accusing it of abandoning its original mission.
OpenAI leadership, however, claims Musk’s moves are aimed at disrupting a major rival.
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