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OpenAI Files Lawsuit Against Elon Musk, Accusing Him of ‘Bad-Faith Tactics’

Eugene Okyere by Eugene Okyere
8 months ago
in Tech
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OpenAI Files Lawsuit Against Elon Musk, Accusing Him of ‘Bad-Faith Tactics’
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OpenAI is suing Elon Musk, alleging he has made continuous efforts to impede its operations for his own gain.

The company claims the Tesla CEO is employing “bad-faith tactics” to gain control over advanced AI technology.

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Musk previously filed a lawsuit against OpenAI CEO Sam Altman last year, aiming to prevent changes to the company’s corporate structure. Musk co-founded OpenAI with Altman but left the organization several years ago.

The BBC has sought a response from Musk’s lawyer regarding OpenAI’s lawsuit, which was filed on Wednesday.

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This countersuit marks a new chapter in the ongoing conflict between two prominent figures in Silicon Valley.

“Elon’s relentless actions against us are merely bad-faith tactics intended to hinder OpenAI and monopolize leading AI innovations for his personal advantage,” OpenAI stated on Wednesday. “We have countersued to put a stop to this.”

Last week, a federal judge in Oakland, California, set a trial date for March 2026 to expedite the legal proceedings initiated by Musk.

U.S. District Judge Yvonne Gonzalez Rogers previously denied Musk’s request for an injunction that would pause OpenAI’s transition from a non-profit to a for-profit entity.

She also indicated that she expects Musk to testify in the case.

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Musk contends that OpenAI has deviated from its original mission as a non-profit dedicated to developing AI for the benefit of humanity, thus breaching their agreement.

He departed from the company in 2018.

“This is about control and revenue. It’s fundamentally about one individual asserting, ‘I want control of that startup,'” said Ari Lightman, a professor of digital media and marketing at Carnegie Mellon University.

Lightman noted that this dispute distracts from efforts to ensure AI is safe and equitable, pushing those priorities to the background amid the focus on control and monetization.

OpenAI also accused Musk of “spreading false information about us” in a post on X, asserting, “Elon has never been about the mission; he has always pursued his own agenda.”

Musk’s xAI serves as a competitor to OpenAI but has so far fallen short. Last month, xAI acquired Musk’s social media platform X, previously known as Twitter.

Musk claims that the combined entity, XAI Holdings, is valued at over $100 billion.

In February, Musk made an unsolicited offer to purchase OpenAI for $97.4 billion, which Altman declined, humorously replying, “No thank you, but we will buy Twitter for $9.74 billion if you want.”

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