The legal battle between OpenAI and Elon Musk is heating up, with OpenAI filing a countersuit against the billionaire entrepreneur, citing a pattern of harassment. In a court filing on Wednesday, OpenAI and its CEO Sam Altman, along with other defendants, asked the court to stop Musk from taking any more “unlawful and unfair action.” They also want him to be held responsible for the damage he’s already caused to the defendants.
“OpenAI is resilient,” the countersuit reads. “But Musk’s actions have taken a toll. Should his campaign persist, greater harm is threatened — to OpenAI’s ability to govern in service of its mission, to the relationships that are essential to furthering that mission, and to the public interest […] Musk’s continued attacks on OpenAI, culminating most recently in the fake takeover bid designed to disrupt OpenAI’s future, must cease.”
For those unaware, Musk sued OpenAI claiming the company abandoned its original nonprofit mission. OpenAI was founded in 2015 as a nonprofit organisation. However, in 2019, the company adopted a “capped-profit” model and now plans to shift to a public benefit corporation.
Musk tried to stop this change with a court order, but a judge denied his request in March. Still, the case is set to go to a jury trial in spring 2026. There’s a lot at stake for OpenAI, as reports suggest it must complete its transition to a for-profit structure by 2025 or risk losing some of the funding it has received.
Also read: Elon Musk accuses OpenAI and Microsoft of stifling competition in AI industry
Meanwhile, groups like the California Teamsters and other nonprofit organisations have asked California Attorney General Rob Bonta to step in and block OpenAI’s corporate conversion. They argue that OpenAI “failed to protect its charitable assets” and is actively “subverting its charitable mission to advance safe artificial intelligence.”
OpenAI has defended its plans, saying the move would strengthen its nonprofit arm. “We’re actually getting ready to build the best-equipped nonprofit the world has ever seen — we’re not converting it away,” the company posted on X.
In a statement to TechCrunch, Marc Toberoff, an attorney for Musk, said: “Had OpenAI’s board genuinely considered [Elon Musk’s bid for OpenAI’s nonprofit earlier this year] as they were obligated to do, they would have seen how serious it was. It’s telling that having to pay fair market value for OpenAI’s assets allegedly ‘interferes’ with their business plans.”