OpenAI hits back at Elon Musk, accuses him of harassment and sabotage in countersuit

OpenAI has filed a countersuit against co-founder Elon Musk, accusing him of launching a “malicious campaign” to obstruct the company’s strategic shift to a for-profit model. The legal action, submitted in a California federal court on Wednesday, marks the latest twist in a high-profile dispute between two of the most influential names in artificial intelligence.

Musk, who co-founded OpenAI in 2015 but exited before the company gained global prominence, has publicly criticised its direction under current CEO Sam Altman. Now at the helm of his own AI startup, xAI, Musk is challenging OpenAI’s structure and intent, while the ChatGPT maker is working to complete a critical $40 billion fundraising round before year’s end.

In its court filing, OpenAI alleges Musk has repeatedly tried to sabotage the company’s efforts through “press attacks, malicious campaigns broadcast to Musk’s more than 200 million followers,” legal threats, and even a rejected $97.4 billion takeover bid led by a Musk-backed group.

“Through press attacks, malicious campaigns… 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 filing states.

The company has asked a federal judge to block Musk from launching further attacks and to hold him accountable for “the damage he has already caused.”

The legal clash will head to trial in spring 2026.

Musk’s legal team responded by defending the takeover bid and accusing OpenAI of violating its obligations.

“Had OpenAI’s Board genuinely considered the bid as they were obligated to do, they would have seen how serious it was,” said Musk’s lawyer Marc Toberoff. “It’s telling that having to pay fair market value for OpenAI’s assets allegedly ‘interferes’ with their business plans.”

Musk has accused OpenAI of abandoning its founding mission to build artificial general intelligence for the benefit of humanity, instead pivoting toward profit. He filed a separate lawsuit last year against OpenAI and Altman, alleging the startup had become beholden to corporate interests.

OpenAI and Altman have denied the claims, with the CEO suggesting Musk’s actions are aimed at slowing a key rival.

“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 posted on X, the social media platform Musk owns.

The outcome of the court battle could shape the future of OpenAI’s business model, with billions in funding and the pace of AI development hanging in the balance.