OpenAI launches a sizable legal backlash against Elon Musk, determined to undermine his rival in the field of artificial intelligence. The latest lawsuit highlights the insidious strategies orchestrated by Musk to undermine OpenAI’s successes. These accusations reveal a fierce confrontation where the future of AGI and billions of dollars at stake exacerbate tensions.
Legal context of OpenAI against Elon Musk
OpenAI recently filed a lawsuit in the United States District Court for the Northern District of California, claiming that Elon Musk has orchestrated an aggressive campaign to undermine the company. According to court documents, this attack would follow his withdrawal from the organization, which occurred several years ago.
The accusations from OpenAI describe Musk’s actions as a series of malicious maneuvers. The company believes these efforts aim to slow its development so he can take control of artificial intelligence innovations for his personal gain. OpenAI decided to counter-sue, seeking an injunction against these actions which it deems illegal.
The roots of OpenAI and the departure of its co-founder
OpenAI was founded in 2015, at the initiative of Sam Altman and Greg Brockman, with the aim of developing artificial general intelligence (AGI) for the benefit of humanity. Initially, Musk participated actively, sitting on the board and promising a substantial financial commitment of $1 billion. However, this collaboration deteriorated over time.
Between 2017 and 2018, tensions arose when Musk reportedly demanded full control of the organization, a request that was refused by his partners. Ilya Sutskever, then chief scientist, warned Musk about the dangers of authoritarian management, suggesting the term “AGI dictatorship.” Following this, Musk left OpenAI, claiming that the initiative could not thrive without him.
Reorganization and success of OpenAI
Faced with growing financial challenges related to technological infrastructure, OpenAI opted for a restructuring in 2019 by creating a capped-profit entity. This move aimed to attract investments while maintaining control through its nonprofit board. Musk was informed of this restructuring and invited to participate, but he declined the offer without expressing immediate objections.
Since this restructuring, OpenAI has recorded significant advancements, particularly with the development of models such as GPT-3, ChatGPT, and GPT-4. These globally recognized innovations have strengthened its market position, provoking, according to the company, Musk’s antagonism.
Allegations of unfair practices by Elon Musk
The OpenAI lawsuit notes several alleged actions by Musk aimed at harming the company. Among these is the discreet creation of his own artificial intelligence company, xAI, in March 2023. A few days later, Musk allegedly advocated for a moratorium on the development of AIs more advanced than GPT-4, strategically conceived to hinder OpenAI while allowing xAI to catch up.
Musk also made a request for confidential documents from OpenAI, claiming to be concerned about its development while working on xAI. His public criticisms, disseminated on the X platform, targeted OpenAI, which he described as a “lie,” “evil,” and “total scam.”
Legal actions and regulatory pressures
Musk’s legal actions include lawsuits initially filed in state court, then at the federal level, containing what OpenAI claims are unfounded allegations regarding an alleged breach of a foundation agreement. He also allegedly called state prosecutors to investigate OpenAI, attempting to intensify regulatory pressure on the company.
In a controversial move, in February 2025, a consortium led by Musk reportedly made a $97.375 billion bid for OpenAI’s assets. OpenAI considers this offer to be a deceptive and baseless maneuver aimed at disrupting its operations and relationships with its investors and employees.
The implications of OpenAI’s counterattack
OpenAI has made two main counterclaims against Elon Musk and xAI. The first concerns unfair competition, asserting that the bogus offer constitutes fraudulent business conduct under California law. The second pertains to tortious interference, alleging that this offer aimed to disrupt OpenAI’s existing and potential relationships with its economic partners.
OpenAI emphasizes that Musk’s actions incur additional costs, thus diverting valuable resources needed for their mission. They assert that this campaign threatens to cause irreparable harm to their governance and business relationships. This legal escalation challenges the future of AGI, as billions are at stake and the confrontation between these prominent tech actors intensifies.
Common FAQs about OpenAI’s counterattack against Elon Musk
Why has OpenAI filed a lawsuit against Elon Musk?
OpenAI has filed a lawsuit against Elon Musk for what it considers a malicious campaign aimed at destabilizing the organization since his departure, involving actions of unfair competition and interference with its economic relationships.
What specific accusations does OpenAI make against Elon Musk?
OpenAI accuses Elon Musk of illegal behavior, including filing fraudulent offers and creating his own competitor, xAI, with the aim of slowing OpenAI while trying to seize its technological innovations.
What is the historical context of the relationship between OpenAI and Elon Musk?
Elon Musk was one of the co-founders of OpenAI and initially supported the organization financially. However, disagreements over control and the strategy of the company led to his departure in 2018, after which OpenAI experienced significant success.
What statements has OpenAI made about the impact of Musk’s actions?
OpenAI claims that Elon Musk’s actions have caused irreparable harm to its operations, threatening its business model and relationships with investors and customers.
What potential outcomes could this legal action have for OpenAI?
OpenAI seeks legal remedies, including an injunction to stop Musk’s alleged illegal actions and compensation for damages already incurred, which could influence its ability to continue its advancements in artificial intelligence.
How does Elon Musk’s creation of xAI affect the artificial intelligence market?
The creation of xAI and Musk’s support for a moratorium on the development of more advanced AIs could disrupt technological advancements in the sector, particularly by slowing progress made by companies like OpenAI.
What have been OpenAI’s main successes since Musk’s departure?
Since Elon Musk’s departure, OpenAI has achieved several notable breakthroughs in the field of artificial intelligence, including the development of models like GPT-3, ChatGPT, and GPT-4, which have been widely adopted and critically acclaimed.
How does OpenAI justify its accusations of a malicious campaign against Elon Musk?
OpenAI justifies its accusations by outlining Elon Musk’s actions aimed at discrediting the organization and disrupting its operations, including public attacks and unfounded legal actions.
What legal measures does OpenAI consider to address Musk’s claims?
OpenAI is considering defending its interests by contesting the lawsuits filed by Musk and asserting its own counterclaims for unfair competition and tortious interference, intending to protect its mission and business model.
