OpenAI Defends Countersuit Against Elon Musk, calls $97.4 Billion Bid a "Sham"
OpenAI is pushing to retain its countersuit against Elon Musk in an ongoing legal battle over the AI firm’s shift to a for-profit model. In a court filing late Wednesday, OpenAI urged a federal judge to reject Musk’s motion to dismiss its claims, stating the Tesla CEO's arguments have "no grounding in facts."
The legal dispute stems from Musk’s 2023 lawsuit accusing OpenAI and CEO Sam Altman of abandoning the organization’s original mission to develop artificial intelligence for the benefit of humanity. Musk, a cofounder of OpenAI in 2015 who later parted ways, claimed the company’s transition to a capped-profit structure betrayed its nonprofit roots.
In April, OpenAI countersued Musk, alleging a pattern of “harassment” and seeking a court order to block further “unlawful and unfair action” from him. Now, OpenAI argues that its countersuit—filed under California’s unfair business practices statute—should proceed as part of the trial and not be postponed.
Central to the countersuit is OpenAI’s claim that a $97.4 billion acquisition bid made earlier this year by a Musk-led group was a publicity stunt. According to OpenAI, the bid was intentionally leaked to the media before the company’s board had even reviewed the proposal, leading to what the firm describes as a calculated attempt to create media buzz rather than a legitimate offer.
“Musk’s actions are not only meritless but part of a broader pattern of interference and bad faith,” OpenAI argued in its filing.
The court is expected to rule soon on whether OpenAI’s countersuit will be included in the expedited trial phase. The outcome could shape how the tech world perceives corporate governance and ethical considerations in AI development.
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