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OpenAI countersues Musk, alleges “fake takeover bid”

OpenAI countersues Musk, alleges “fake takeover bid”

TB EditorbyTB Editor
10 April 2025
in AI
Reading Time: 2 mins read
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OpenAI has filed a countersuit against Elon Musk, alleging that his actions are bad-faith tactics aimed at slowing down the company and seizing control of its AI innovations for personal benefit.

The countersuit claims that Musk’s continued attacks on OpenAI, including a recent “fake takeover bid,” must cease and that he should be held responsible for the damage he has caused. OpenAI’s lawyers argue that Musk’s actions are unlawful and unfair, and they are seeking to enjoin him from further such actions.

Musk was initially part of OpenAI’s founding team but later sued the company last spring, alleging that it had deviated from its original mission to develop Artificial General Intelligence (AGI) for the benefit of humanity. He claimed that OpenAI was now pursuing profits instead of its not-for-profit mission. Musk dropped the lawsuit in June but refiled it in August, with the case scheduled to go to trial in the spring of 2026.

In response to Musk’s allegations, OpenAI published a blog post in December refuting his claims and asserting that Musk had previously advocated for a for-profit structure for the company. The blog post included evidence to support OpenAI’s position, suggesting that Musk’s lawsuit was without merit.

Earlier this year, Musk offered to buy OpenAI for $97.4 billion, stating that he wanted the company to return to its original open-source and safety-focused mission. However, OpenAI’s board of directors unanimously rejected the offer, which they now describe as a “sham bid.” The countersuit alleges that Musk’s takeover bid was designed to disrupt OpenAI’s future and gain control of its innovations.

Musk’s initial lawsuit and subsequent actions against OpenAI have been met with skepticism by some, with The Verge’s editor-in-chief, Nilay Patel, describing Musk’s legal case against OpenAI as “hilariously bad.” OpenAI’s countersuit is a significant step in the ongoing dispute between the company and its former co-founder.

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