Elon Musk Sued by OpenAI Over Alleged ‘Bad-Faith Tactics

OpenAI, the artificial intelligence research organisation behind ChatGPT, has filed a countersuit against billionaire entrepreneur Elon Musk, accusing him of using “bad-faith tactics” aimed at derailing the company’s progress and taking control of its cutting-edge AI technology. Reports Technology News

The lawsuit, filed in a California federal court, marks a significant escalation in the ongoing feud between OpenAI and Musk, who co-founded the organisation but parted ways with it several years ago.

According to court filings and media reports, OpenAI alleges that Musk has led a “relentless campaign” to damage the organisation, citing public attacks, a purportedly deceptive $97.4 billion unsolicited takeover bid, and attempts to disrupt OpenAI’s fundraising efforts.

The company claims Musk’s actions were strategically designed to slow its advancements in AI research while advancing the interests of his rival AI firm, xAI.

“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,” OpenAI wrote in a statement posted on X, the social platform owned by Musk.

The countersuit also accuses Musk of spreading misinformation and attempting to undermine OpenAI’s relationships with key stakeholders, including investors, partners, and employees.

This legal clash follows Musk’s earlier lawsuit filed against OpenAI and its CEO, Sam Altman, last year. In that suit, Musk argued the organisation had strayed from its original nonprofit mission of developing AI for the public good, shifting instead toward a profit-driven model. He sought to block OpenAI’s transition to a for-profit structure—an evolution the company argues is essential for raising the substantial capital required to stay competitive in the high-stakes AI industry.

OpenAI’s current valuation has soared to $300 billion, buoyed by a recent $40 billion funding round led by Japanese investment giant SoftBank.