OpenAI Countersues Elon Musk, Accuses Him of Attempting to Undermine Company for Personal Gain

OpenAI has filed a countersuit against Elon Musk, alleging the tech billionaire has deliberately attempted to sabotage the company in order to gain control over its advanced artificial intelligence technology.

In a strongly worded statement released on Wednesday, OpenAI accused the Tesla and xAI founder of using “bad-faith tactics” to obstruct its progress. “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 said. “Today, we countersued to stop him.”

The legal dispute stems from Musk’s own lawsuit filed last year, in which he accused OpenAI CEO Sam Altman of steering the organisation away from its original non-profit mission to a profit-driven structure that allegedly violates the company’s founding agreement. Musk co-founded OpenAI in 2015 but left the board in 2018.

The feud between Musk and OpenAI has grown increasingly bitter, with both sides accusing each other of abandoning the original goal of developing AI for the public good. OpenAI has claimed that Musk has been spreading misinformation and prioritizing his personal ambitions over shared values. “Elon’s never been about the mission. He’s always been about his own agenda,” the company posted on X (formerly Twitter).

The legal showdown is scheduled for trial in March 2026, following a decision by U.S. District Judge Yvonne Gonzalez Rogers to fast-track the case. Last month, the judge denied Musk’s request for a temporary injunction to halt OpenAI’s transition to a for-profit model, but said she expected him to testify in court.

Tensions further escalated in February when Musk reportedly offered to acquire OpenAI for $97.4 billion — an unsolicited bid that Altman publicly declined, jokingly offering to buy X (formerly Twitter) for $9.74 billion instead.

Musk’s attorney, Marc Toberoff, criticized OpenAI’s handling of the offer. “Had OpenAI’s Board genuinely considered the bid, as they were obligated to do, they would have seen just how serious it was,” he said in a statement to the BBC.

The countersuit adds another layer of complexity to the rivalry between Musk’s AI startup, xAI, and OpenAI. Despite Musk’s public ambitions, xAI remains behind in the race for AI dominance. Last month, xAI was folded into X Corp, the parent company of Musk’s social media platform, in a move he claims brings its value to over $100 billion.

Industry observers say the dispute has become a distraction from broader conversations around AI safety and public benefit. “This is about control. This is about revenue,” said Carnegie Mellon professor Ari Lightman. “The original mission of making AI safe and equitable has taken a backseat to a power struggle over control and monetization.”