The OpenAI/Musk Feud: A Legal Battle Brewing

The OpenAI/Musk Feud Thus Far

The legal battle between Elon Musk and OpenAI officially began in February 2024, after Musk filed his original lawsuit against OpenAI, alleging the AI company had strayed from its founding mission as a nonprofit.

Although the roots of the feud go back to the late 2010s and the early days of OpenAI, the legal battle between Elon Musk and OpenAI is scheduled to begin in the spring of 2026.

Musk’s legal team sought a preliminary injunction against OpenAI, which was meant to temporarily halt its transition to a for-profit model; however, that request was denied by the US District Judge Yvonne Gonzalez Rogers, who instead scheduled a jury trial to begin on March 16, 2026.

In February 2025, an investment consortium led by Musk placed a bid of $97.4 billion to purchase OpenAI. The buyout was expeditiously rejected by OpenAI’s board of directors.

OpenAI’s Countersuit

OpenAI’s countersuit revolves around Musk’s alleged ongoing harassment of the company. It cites all of the events mentioned above as evidence to support its claims.

The countersuit reads, in part: “Through press attacks, malicious campaigns broadcast to Musk’s more than 200 million followers on the social media platform he controls, a pretextual demand for corporate records, harassing legal claims, and a sham bid for OpenAI’s assets, Musk has tried every tool available to harm OpenAI.”

OpenAI is not denying its intentions to transition to a for-profit model; the company says it’s a necessary step that will help them maintain competitiveness in the ever-growing consumer AI market. However, OpenAI insists it’s staying true to the original goal of developing AI for the betterment of humanity instead of focusing solely on corporate profits.

The Background of the Feud

The roots of the feud go back to the late 2010s and the early days of OpenAI. Elon Musk was one of the earliest supporters of OpenAI, and he even donated a significant amount of money to the organization.

However, over time, Musk and OpenAI’s founders began to have differing views on the direction of the organization. Musk wanted OpenAI to focus more on developing commercial AI applications, while the founders wanted to keep the organization focused on developing AI for the betterment of humanity.

In 2024, Musk filed his original lawsuit against OpenAI, alleging that the organization had strayed from its founding mission as a nonprofit. OpenAI responded by filing a countersuit, accusing Musk of sustained harassment.

The Implications of the Feud

If Musk’s lawsuit is successful, it could have significant implications for OpenAI. The organization would be forced to abandon its plans to transition to a for-profit model, which could jeopardize its future.

On the other hand, if OpenAI’s countersuit is successful, it could lead to Musk being held accountable for his alleged harassment of the organization. This could have significant implications for Musk’s reputation and his ability to conduct business in the future.

Conclusion

The legal battle between Elon Musk and OpenAI is a complex and contentious issue. The outcome of the feud will have significant implications for both parties, and it remains to be seen how the situation will ultimately play out.

FAQs

Q: What is the basis of Elon Musk’s lawsuit against OpenAI?

A: Musk’s lawsuit alleges that OpenAI has strayed from its founding mission as a nonprofit and is no longer focused on developing AI for the betterment of humanity.

Q: What is OpenAI’s response to Musk’s lawsuit?

A: OpenAI has filed a countersuit, accusing Musk of sustained harassment and alleging that he has tried to harm the organization through various means.

Q: What are the implications of the feud for OpenAI?

A: If Musk’s lawsuit is successful, OpenAI would be forced to abandon its plans to transition to a for-profit model, which could jeopardize its future.

Q: What are the implications of the feud for Elon Musk?

A: If OpenAI’s countersuit is successful, Musk could be held accountable for his alleged harassment of the organization, which could have significant implications for his reputation and his ability to conduct business in the future.