The gloves are OFF! OpenAI has launched a blistering countersuit against Elon Musk, accusing the Tesla CEO of a relentless campaign to undermine their business for his own gain. The lawsuit alleges Musk is employing ‘bad-faith tactics’ in an attempt to seize control of cutting-edge AI technology. This legal action escalates the already intense conflict between two Silicon Valley titans. OpenAI claims Musk’s actions are a blatant attempt to slow them down and grab control of their AI innovations for his personal benefit, stating, ‘Elon’s nonstop actions against us are just bad-faith tactics…Today, we countersued to stop him.’
Musk initially sued OpenAI CEO Sam Altman, challenging the company’s corporate structure shift. He claims OpenAI abandoned its founding non-profit mission to benefit humanity and breached their original agreement. Ari Lightman, a professor at Carnegie Mellon University, argues the dispute is about ‘control’ and ‘revenue,’ diverting attention from AI safety and equity.
OpenAI further accuses Musk of ‘spreading false information’ about them. They also add ‘Elon’s never been about the mission. He’s always been about his own agenda.’ Musk’s xAI, a competitor to OpenAI, recently acquired X (formerly Twitter) and Musk claims the combined company, XAI Holdings, is valued at more than $100 billion.
Last month, Musk even made an unsolicited $97.4 billion bid for OpenAI, which Altman rejected. With a trial date set for March 2026, this battle promises to be one of the most closely watched legal showdowns in the tech world.