OpenAI Countersues Elon Musk, Alleging Harassment and Disruption of Company Activities

Legal Showdown Escalates Over Future of ChatGPT Maker and AI Industry Control

In a dramatic escalation of the legal battle between OpenAI and Elon Musk, the artificial intelligence research company has filed a countersuit accusing the Tesla and SpaceX CEO of harassment, interference, and attempts to sabotage the firm’s corporate strategy. The countersuit, filed in the U.S. District Court for the Northern District of California, urges the court to prevent Musk from engaging in further “unlawful and unfair action” and to hold him liable for damages already incurred by OpenAI.

This legal counterattack comes in response to Musk’s ongoing lawsuit filed last year against OpenAI and its CEO, Sam Altman, in which Musk alleged that the company had deviated from its original non-profit mission and prioritized commercial gain. Musk, who co-founded OpenAI in 2015 but departed prior to its rapid commercialization, has since launched a rival AI firm xAI and has publicly criticized OpenAI’s transition to a for-profit model.

OpenAI’s latest filing contends that Musk has waged a coordinated campaign of legal and public harassment, leveraging his extensive social media reach and legal tools to derail the company’s strategic goals, particularly its $40 billion funding round that hinges on completing the transition to a capped-profit structure by year-end.

Highlights:

• OpenAI filed a countersuit accusing Musk of harassment and interference.

• The company seeks court intervention to stop further alleged attacks.

• At the center is OpenAI’s transition to a for-profit model critical for its $40 billion capital raise.

• Musk previously sued OpenAI for allegedly abandoning its original non-profit ethos.

OpenAI Alleges Pattern of Malicious Tactics, Including Social Media Attacks and Legal Obstruction

OpenAI’s legal brief paints a detailed picture of Musk’s alleged tactics aimed at undermining the firm’s reputation and internal stability. The filing lists “press attacks, malicious campaigns” shared with Musk’s 200 million-plus followers on X, as well as a “pretextual demand” for access to confidential corporate records, a series of “harassing legal claims”, and what OpenAI calls a “sham” acquisition attempt earlier this year.

The company argues that Musk’s actions are not in pursuit of protecting OpenAI’s foundational mission but rather a calculated attempt to sabotage the world’s leading AI firm for the benefit of his own ventures. The countersuit states, “Musk has tried every tool available to harm OpenAI,” asserting that his endgame is to gain control over AI innovation to advance his own interests through xAI and other technology assets.

OpenAI also claims that Musk’s interference has already caused financial and reputational harm, potentially putting its funding plans at risk. The company is demanding that the court not only bar Musk from any further actions but also hold him accountable for the existing damage to its fundraising trajectory and operational planning.

Highlights:

• OpenAI cited Musk’s social media influence as a tool of coordinated disruption.

• Accusations include record access demands, legal harassment, and a “sham bid.”

• Company claims Musk aims to hijack AI leadership for personal business gain.

• Filing seeks court order to restrain Musk and award damages.

Musk’s Takeover Bid and xAI Ties Fuel Further Conflict

Elon Musk’s legal team responded to OpenAI’s filing by referencing a $97.4 billion unsolicited takeover bid made by a consortium led by Musk earlier this year, which OpenAI summarily rejected. According to Musk’s attorney, Marc Toberoff, the board of OpenAI failed to “genuinely consider” the offer, dismissing it without proper evaluation. “It’s telling that having to pay fair market value for OpenAI’s assets allegedly ‘interferes’ with their business plans,” Toberoff stated in remarks provided to Reuters.

Meanwhile, the backdrop to this legal drama is Musk’s growing empire of AI-linked assets, including xAI, the firm he founded in 2023 to directly compete with OpenAI, and X, the rebranded Twitter platform. Last month, xAI acquired X in a move that valued the social media platform at $33 billion, allowing cross-ownership synergies between Musk’s media and AI investments.

OpenAI has responded aggressively to this consolidation of power, saying in a post on X: “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.”

Highlights:

• Musk offered a $97.4 billion takeover bid, which OpenAI rejected.

• Legal counsel argued OpenAI failed to review the bid responsibly.

• xAI’s acquisition of X positions Musk to cross-leverage AI and social media.

• OpenAI accuses Musk of orchestrating a power grab under the guise of fairness.

AI Industry Stakes Rise as Jury Trial Looms in 2026

The lawsuit is now poised to move toward a jury trial scheduled for spring 2026, with the future governance and commercialization of ChatGPT and other core OpenAI technologies hanging in the balance. The core dispute revolves around OpenAI’s pivot from a non-profit model to a capped-profit limited partnership—critical for attracting long-term investors in an industry with soaring capital demands.

OpenAI and CEO Sam Altman have categorically denied Musk’s claims and argue that their hybrid model aligns with long-term goals of maximizing public benefit while enabling sustainable development. Altman has also suggested that Musk’s motivations are not altruistic, but rather grounded in an effort to hinder a key competitor.

The trial is expected to surface internal communications, board deliberations, and other documents that may shed light on OpenAI’s structural evolution and Musk’s original intentions during his tenure as co-founder.

Highlights:

• Jury trial is set for spring 2026 in California federal court.

• Dispute centers on OpenAI’s shift to a capped-profit model.

• Altman denies Musk’s altruism, says it’s about competitive interference.

• Trial likely to unveil deeper insights into OpenAI’s governance history.