OpenAI Countersues Musk Over Alleged AI Sabotage

OpenAI has filed a countersuit against Elon Musk, escalating a legal battle that has been brewing for some time. The dispute centers around Musk's alleged attempts to derail OpenAI's progress through various means, including press attacks, malicious campaigns, and legal claims. According to the filing, Musk walked away from OpenAI after it refused to merge with his company, Tesla, and failed to fulfill a $1 billion commitment to the startup. Musk subsequently founded his own AI firm, xAI, just one year after OpenAI launched ChatGPT.

The lawsuit alleges that Musk has used his influence and resources to harm OpenAI, including a pretextual demand for corporate records and a sham bid for OpenAI’s assets. OpenAI claims that Musk's actions are bad-faith tactics aimed at slowing down the company and seizing control of its leading AI innovations for his personal benefit. In response to the countersuit, Musk wrote on X, "Scam Altman is at it again," referring to OpenAI's CEO Sam Altman.

Musk originally sued OpenAI last year, citing concerns over the company's motives to operate as a "humanitarian" based operation while also seeking to turn a profit. A federal judge recently decided that Musk's concerns will be heard at a spring 2026 jury trial. The legal battle between OpenAI and Musk is unfolding against a backdrop of Musk's growing political entanglements with the administration of U.S. President Donald Trump. Trump, who campaigned on a pro-crypto stance, has faced increased scrutiny in recent weeks over the mass firing of the federal workforce by the Department of Government Efficiency (DOGE), which Musk heads.

Musk's companies have faced pushback amid his push for deregulation and Trump's polarizing tariff policies. The legal clash between OpenAI and Musk exposes a power struggle that goes far beyond a failed business relationship. The outcome of this legal battle could have significant implications for the future of AI development and the role of influential figures like Musk in shaping the industry.