SAN FRANCISCO, USA – OpenAI has filed a countersuit against Elon Musk, accusing the Tesla CEO of using “bad-faith tactics” to hinder its progress and seize control of cutting-edge artificial intelligence technology for his personal gain.
The lawsuit, filed on Wednesday, April 9, 2025, escalates an ongoing legal battle between two of Silicon Valley’s most influential figures.
The dispute centers around Musk’s efforts to slow down OpenAI’s business after the company shifted from its non-profit origins to a for-profit model, a move Musk argues goes against its founding mission to develop AI for the benefit of humanity.
Musk co-founded OpenAI with Sam Altman, the company’s current CEO, but left the company in 2018, distancing himself from its subsequent developments.
“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,” OpenAI said in a statement, announcing the countersuit.
The lawsuit follows Musk’s 2024 legal action against Altman, in which Musk sought to prevent the company from altering its corporate structure.
Musk’s complaint alleges that OpenAI’s shift to a for-profit model breaches its original intent and could undermine the safety and ethical development of AI.
U.S. District Judge Yvonne Gonzalez Rogers has set a trial date for March 2026 in an attempt to expedite the case.
In a previous ruling, Judge Rogers denied Musk’s request for an injunction to temporarily halt OpenAI’s transformation, and she has indicated that Musk will be required to testify in the case.
Ari Lightman, a professor at Carnegie Mellon University, weighed in on the dispute, noting that the legal fight is shifting focus away from vital discussions about AI’s safety and societal impacts.
“This is about control. This is about revenue. It’s about one person trying to seize control of a startup,” said Lightman.
“The focus on monetization and control is a distraction from making AI safe and equitable.”
OpenAI further claims that Musk has been spreading false information about the company, asserting in a post on social media platform X that Musk has been driven by his own agenda rather than the mission of OpenAI.
Musk’s XAI, a rival to OpenAI, has not achieved the same level of prominence and success in the AI space.
Last month, XAI acquired Musk’s social media platform X (formerly Twitter), and Musk has claimed that the combined value of XAI Holdings is over $100 billion.
Musk had also previously made an unsolicited bid to buy OpenAI for $97.4 billion in February 2025, an offer that Altman rejected.
“No thank you, but we will buy Twitter for $9.74 billion if you want,” Altman responded, highlighting the ongoing rivalry between the two.
