OpenAI countersues Elon Musk over alleged sabotage campaign

OpenAI has filed a countersuit against Elon Musk, accusing the billionaire of leading a deliberate campaign to undermine the organization.

The legal filing, submitted on April 9, claimed that Musk’s actions allegedly included a fake takeover bid and coordinated efforts to damage the AI firm’s reputation.

According to OpenAI, these attacks intensified after ChatGPT’s massive success. The chatbot’s global popularity marked a turning point for the company and allegedly marked the beginning of Musk’s hostility.

The filing stated that Musk could not accept the success of a venture he had distanced himself from, choosing instead to launch a rival AI firm while publicly criticizing OpenAI and its leadership.

According to OpenAI:

“Musk made it his project to take down OpenAI, and to build a direct competitor that would seize the technological lead—not for humanity but for Elon Musk.”

The company alleged that Musk used his influence and platforms — including X — to spread negative claims and rally public opinion against OpenAI.

The firm claimed that these attacks were not random but part of a calculated strategy to damage its credibility and stall its growth.

The suit also outlined how Musk filed legal challenges, demanded access to internal records, and made a “sham bid” to acquire the company.

OpenAI further stated that Musk’s criticism centered on its planned shift from a nonprofit structure to a capped-profit model. Musk has publicly argued that the move betrayed the company’s founding mission.

However, OpenAI pushed back, stating the nonprofit remains in place and will oversee the organization’s future. It also claimed Musk previously supported restructuring to stay competitive, making his recent objections appear inconsistent.

The filing showed:

“Musk peddles the false claim that OpenAI is planning to ‘convert’ from a nonprofit into a for-profit enterprise. He does so knowing the nonprofit not only would continue to exist, but would be one of the best-resourced in history.”

The filing also revealed that Musk’s $97.4 billion bid to take control of OpenAI was firmly rejected because of the turmoil that followed his acquisition of Twitter in 2022.

According to OpenAI:

“Investors, partners, and employees saw what happened to Twitter when Musk took it over in 2022: the company’s value plummeted, business partners were left hanging, most employees were sent packing, and the business was ultimately absorbed into Musk’s AI company.”

Considering all of these issues, OpenAI has requested the court to prevent Musk from taking further action against the company and hold him accountable for the damage he has already caused.