OpenAI Sues Musk Over Alleged Campaign to Undermine Firm

OpenAI has taken legal action against Elon Musk, alleging that the billionaire has orchestrated a deliberate campaign to undermine the organization. The countersuit, filed on April 9, accuses Musk of engaging in a series of actions aimed at damaging OpenAI's reputation and operations. These actions include a fake takeover bid and coordinated efforts to spread negative claims about the AI firm.

The legal filing highlights that Musk's hostility towards OpenAI intensified following the massive success of ChatGPT. The global popularity of the chatbot marked a significant turning point for the company, but it also allegedly triggered Musk's aggressive response. According to OpenAI, Musk could not accept the success of a venture he had distanced himself from and chose to launch a rival AI firm while publicly criticizing OpenAI and its leadership.

OpenAI's filing states that Musk used his influence and platforms, including X, to spread negative claims and rally public opinion against the company. The firm alleges that these attacks were not random but part of a calculated strategy to damage its credibility and stall its growth. The suit also outlines how Musk filed legal challenges, demanded access to internal records, and made a "sham bid" to acquire the company.

One of the key points of contention is Musk's criticism of OpenAI's planned shift from a nonprofit structure to a capped-profit model. Musk has publicly argued that this move betrayed the company's founding mission. However, OpenAI has pushed back, stating that the nonprofit structure remains in place and will oversee the organization's future. The company also claims that Musk previously supported restructuring to stay competitive, making his recent objections appear inconsistent.

The filing reveals that Musk's $97.4 billion bid to take control of OpenAI was firmly rejected due to the turmoil that followed his acquisition of Twitter in 2022. According to OpenAI, investors, partners, and employees saw the negative impact of Musk's takeover of Twitter, including the company's value plummeting, business partners being left hanging, most employees being sent packing, and the business being ultimately absorbed into Musk's AI company.

Considering all of these issues, OpenAI has requested the court to prevent Musk from taking further action against the company and hold him accountable for the damage he has already caused. The company's legal action aims to protect its operations and reputation from what it describes as Musk's deliberate and harmful campaign.