The legal battle between OpenAI and its estranged co-founder Elon Musk escalated on Wednesday as the AI company filed a countersuit against the billionaire tech kingpin.
TechCrunch reports that in the latest development in the ongoing feud between OpenAI and Elon Musk, the artificial intelligence company has filed a countersuit against its former co-founder. The filing, submitted by attorneys representing OpenAI and its CEO Sam Altman, calls for Musk to be enjoined from “further unlawful and unfair action” and held accountable for the damage he has already inflicted on the defendants.
The countersuit comes in response to Musk’s ongoing legal campaign against OpenAI, which he accuses of abandoning its non-profit mission to ensure that AI research benefits all of humanity. Musk, once a key supporter of OpenAI, has become one of its most vocal critics since the company transitioned to a “capped-profit” structure in 2019. OpenAI is now seeking to restructure itself once more into a public benefit corporation.
In March, a federal judge denied Musk’s request for a preliminary injunction to halt OpenAI’s transition to a for-profit entity but allowed the case to proceed to a jury trial in spring 2026. The stakes are high for OpenAI, as the company reportedly needs to complete its for-profit conversion by 2025 or risk losing some of the capital it has raised in recent months.
The countersuit alleges that Musk’s actions have taken a significant toll on OpenAI, threatening harm to the company’s ability to govern in service of its mission, its essential relationships, and the public interest. OpenAI’s attorneys argue that Musk’s “continued attacks,” including what it calls a fake takeover bid designed to disrupt the company’s future, must cease.
In response to the countersuit, Marc Toberoff, an attorney for Musk, stated that if OpenAI’s board had genuinely considered Musk’s bid for the company’s nonprofit earlier this year, they would have recognized its seriousness. Toberoff added that it is “telling” that having to pay fair market value for OpenAI’s assets allegedly “interferes” with their business plans.
OpenAI has maintained that its conversion to a for-profit structure would preserve its non-profit arm and provide it with resources to be spent on charitable initiatives in sectors such as healthcare, education, and science. The company has also accused Musk of prioritizing his own agenda over the mission of advancing safe artificial intelligence.
Read more at TechCrunch here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
