OpenAI has formally filed a countersuit in U.S. District Court for Northern California, accusing co-founder Elon Musk of orchestrating a “campaign of harassment” aimed at disrupting the company and seizing control of its technology. The filing, lodged on April 9, includes explosive allegations: Musk launched press attacks on OpenAI, exerted legal pressure, and launched a sham bid to acquire the company—an unsolicited $97.4 billion takeover attempt described by OpenAI as a thinly‑veiled power play.
The countersuit states that Musk used “every tool available”—from leveraging his 200 million followers on X to filing harassing legal claims and demanding internal corporate records—in an effort to undermine OpenAI’s operations and stall its progress. OpenAI’s lawyers did not mince words, calling Musk’s takeover proposal a “fake” effort meant to sabotage the company’s transition to a for‑profit public benefit corporation, a key step in closing its historic $40 billion funding round.
The legal clash reflects a deeper rift dating to Musk’s departure from OpenAI’s board in 2018. Musk had previously sued in 2024, arguing that OpenAI strayed from its nonprofit origins under CEO Sam Altman, particularly after forming partnerships with Microsoft. When Musk resurfaced this year with a multi‑billion dollar takeover offer, OpenAI dismissed it outright—with Altman quipping via X, “No thank you, but we will buy Twitter for $9.74 billion if you want.”
Counsel for OpenAI contend that Musk’s actions inflicted financial and reputational harm, forcing the company to divert internal resources. The countersuit requests an injunction to bar Musk from further detrimental behavior and seeks compensation for the alleged damages.
Musk’s team counters that the takeover bid was legitimate and backed by committed financing, arguing that OpenAI’s rejection interfered with fair-market dealings. They maintain the lawsuit is a strategic attempt to shield the company’s shifting profit motive and avoid accountability.
The case is set to proceed to trial in spring 2026, following court rulings earlier this year that upheld Musk’s lawsuit challenging OpenAI’s structural conversion and triggered this countersuit.
This legal battle positions two high-profile founders on opposing sides of a pivotal question: should OpenAI evolve into a publicly capitalized business capable of scaling its ambitions—or remain tethered to its original nonprofit mission? With billions at stake and technical leadership hanging in the balance, the outcome could redefine the future trajectory of artificial intelligence.
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