OpenAI Countersues Elon Musk, Setting Stage For Legal Battle

Key Takeaways:

• The lawsuit seemingly accuses Musk of launching a multi-front attack to derail OpenAI’s progress.
• According to the filing, Musk allegedly walked away from OpenAI after it refused to absorb into Tesla, failed to fulfill a $1B pledge, and swiftly founded xAI.
• The legal battle is unfolding against a backdrop of Musk’s growing political entanglements with Trump’s administration.

OpenAI is countersuing Elon Musk after the Department of Government Efficiency (DOGE) head pursued litigation against the organization last week, an April 9 filing in the Northern District of California shows.

According to the Wednesday court filing, Musk attempted to prevent the AI company from becoming a public benefit corporation under its existing for profit entity.

The lawsuit alleges that Musk backed out of OpenAI when the venture refused to merge with his company, Tesla.

Musk, whom the lawsuit claims failed to fulfill his $1 billion commitment to the startup, went on to launch his own AI firm, xAI, just one year after OpenAI launched ChatGPT.

“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,” the lawsuit states.

Elon’s nonstop actions against us are just bad-faith tactics to slow down OpenAI and seize control of the leading AI innovations for his personal benefit. Today, we counter-sued to stop him.

“Elon’s nonstop actions against us are just bad-faith tactics to slow down OpenAI and seize control of the leading AI innovations for his personal benefit,” the company said in a recent X post. “Today, we counter-sued to stop him.”

Musk originally sued the Sam Altman-led company last year, citing concerns over OpenAI’s motives to be a “humanitarian” based operation looking to turn a profit.

Just last week, a federal judge decided that Musk’s concerns will be heard at a spring 2026 jury trial.

“Scam Altman is at it again,” Musk wrote in an April 9 X post in response to the organization’s latest lawsuit.

Scam Altman is at it again

Musk has been embroiled in public controversy as of late over his role in U.S. President Donald Trump’s administration.

Trump, who largely campaigned on a pro-crypto stance, has faced increased scrutiny in recent weeks over DOGE’s mass firing of the federal workforce.

Musk’s companies have faced pushback amid his push for deregulation and Trump’s polarizing tariff policies, with Tesla stock down over 9% on Thursday.

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