OpenAI has officially countersued Elon Musk, escalating a fierce legal battle between the AI pioneer and one of its original co-founders. The AI company accuses Musk of waging a campaign of harassment and attempting to sabotage its plans for future growth.
OpenAI accuses Musk of harassment
In a new filing on Wednesday, OpenAI asked a federal judge to block Musk from continuing what it calls “unlawful and unfair action” against the company. The countersuit claims Musk has engaged in a pattern of attacks via social media, press, and legal threats to disrupt OpenAI’s transition to a for-profit model.
“Through press attacks, malicious campaigns broadcast to Musk’s more than 200 million followers on the social media platform he controls... Musk has tried every tool available to harm OpenAI,” the company wrote in its legal filing.
Musk’s legal defense: A rejected USD 97.4 billion bid
In response, Musk’s legal team pointed to an unsolicited USD 97.4 billion takeover bid he made earlier this year through a Musk-led group. OpenAI rejected the offer. Musk’s lawyer, Marc Toberoff, claimed the board failed to consider the offer seriously, which allegedly would have benefited OpenAI’s growth.
Battle Over the Future of AI
The conflict traces back to Musk’s departure from OpenAI years ago, followed by the launch of his own AI venture, xAI, in 2023. Since then, Musk has criticized OpenAI’s shift to a for-profit model — a change OpenAI says is essential to raise up to $40 billion for development.
The trial is scheduled to begin in spring 2026, and at its core is OpenAI’s right to grow and compete in the global AI race.
OpenAI Responds on X
In a public post on X (formerly Twitter), OpenAI said: "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."
The lawsuit comes as Musk’s xAI recently completed a deal involving X at a USD 33 billion valuation, creating added pressure in the AI arms race.
What's at Stake?
At the heart of the legal drama is whether OpenAI can complete its transition into a capped-profit model by the end of the year — a move critical to securing massive funding and maintaining its competitive edge in AI development.
OpenAI CEO Sam Altman has rejected Musk’s claims, alleging Musk is simply trying to block a fast-growing competitor.
OpenAI has filed a countersuit against Elon Musk, accusing him of harassing the company through public attacks, legal threats, and a rejected $97.4 billion takeover bid.
The legal battle highlights growing tensions between the ChatGPT maker and its former co-founder, who now runs rival AI company xAI.