Finance

OpenAI Strikes Back: Sues Elon Musk Over Allegations of Sabotage!

2025-04-10

Author: Chun

In an explosive turn of events, OpenAI is taking legal action against tech titan Elon Musk, accusing him of relentless efforts to undermine the company for his personal advantage.

OpenAI claims Musk is employing "bad-faith tactics" in his quest to gain control over advanced AI technologies, posing a significant threat to its operations.

This lawsuit marks a new chapter in the ongoing rivalry between Musk and OpenAI, particularly heated after Musk's 2022 lawsuit against OpenAI's CEO, Sam Altman, over changes to the company's structure. Co-founded by Musk, he distanced himself from OpenAI in 2018.

OpenAI's recent countersuit was filed on a dramatic Wednesday, highlighting the escalating tensions in the Silicon Valley landscape.

An OpenAI statement boldly declared: "Elon's nonstop actions against us are mere bad-faith tactics aimed at seizing control of cutting-edge AI innovations for personal gain. Today, we countersued to put a stop to this!"

Adding fuel to the fire, a federal judge in Oakland has scheduled a March 2026 trial for Musk’s earlier suit, a strategic move to expedite this high-stakes legal battle. In a prior ruling, US District Judge Yvonne Gonzalez Rogers denied Musk’s request to temporarily block OpenAI's transition from a non-profit to a for-profit entity, suggesting he will soon be required to testify.

Musk accuses OpenAI of abandoning its original mission of developing AI for the betterment of humanity, claiming breach of contract. It's evident that this legal tussle is not just about business—it's about power.

Ari Lightman, a digital media expert at Carnegie Mellon University, explained, "This isn't just business; it's a struggle for control and revenue that overshadows crucial discussions about making AI safe and equitable."

In a bold statement on social media, OpenAI fired back at Musk's charges, claiming he has been disseminating falsehoods about them and asserting, "Elon's never been about the mission; he's always been about his own agenda."

Meanwhile, Musk's venture, xAI, aims to rival OpenAI but has yet to make significant strides. Recent news indicates that Musk's xAI has acquired his social media platform, X, formerly known as Twitter. Together, this newly formed XAI Holdings is reportedly valued at over $100 billion.

In a surprising 2023 bid, Musk offered to purchase OpenAI for a staggering $97.4 billion, only to be humorously rebuffed by Altman with a cheeky tweet stating, "No thank you, but we’ll buy Twitter for $9.74 billion if you like."

As the saga continues to unfold, the tech world is watching closely—who will emerge victorious in this battle of innovation and ambition?