OpenAI Countersues Elon Musk, Setting Stage For Legal Battle

Posted on

Last updated:

Author

Julia Smith

Author

Julia Smith

About Author

Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

Last updated:

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas – from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Key Takeaways:

  • The lawsuit seemingly accuses Musk of launching a multi-front attack to derail OpenAI’s progress.
  • According to the filing, Musk allegedly walked away from OpenAI after it refused to absorb into Tesla, failed to fulfill a $1B pledge, and swiftly founded xAI.
  • The legal battle is unfolding against a backdrop of Musk’s growing political entanglements with Trump’s administration.

OpenAI is countersuing Elon Musk after the Department of Government Efficiency (DOGE) head pursued litigation against the organization last week, an April 9 filing in the Northern District of California shows.

OpenAI Pushes Back

According to the Wednesday court filing, Musk attempted to prevent the AI company from becoming a public benefit corporation under its existing for profit entity.

The lawsuit alleges that Musk backed out of OpenAI when the venture refused to merge with his company, Tesla.

Musk, whom the lawsuit claims failed to fulfill his $1 billion commitment to the startup, went on to launch his own AI firm, xAI, just one year after OpenAI launched ChatGPT.

“Through press attacks, malicious campaigns broadcast to Musk’s more than 200 million followers on the social media platform he controls, a pretextual demand for corporate records, harassing legal claims, and a sham bid for OpenAI’s assets, Musk has tried every tool available to harm OpenAI,” the lawsuit states.

“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 company said in a recent X post. “Today, we counter-sued to stop him.”

Elon Musk Cites Humanitarian Concerns In Lawsuit

Musk originally sued the Sam Altman-led company last year, citing concerns over OpenAI’s motives to be a “humanitarian” based operation looking to turn a profit.

Just last week, a federal judge decided that Musk’s concerns will be heard at a spring 2026 jury trial.

“Scam Altman is at it again,” Musk wrote in an April 9 X post in response to the organization’s latest lawsuit.

Musk has been embroiled in public controversy as of late over his role in U.S. President Donald Trump’s administration.

Trump, who largely campaigned on a pro-crypto stance, has faced increased scrutiny in recent weeks over DOGE’s mass firing of the federal workforce.

Musk’s companies have faced pushback amid his push for deregulation and Trump’s polarizing tariff policies, with Tesla stock down over 9% on Thursday.

Related Posts