OpenAI, a leading AI company, is pushing back against Elon Musk after he pursued litigation against the organization last week. The lawsuit, filed in the Northern District of California on April 9, accuses Musk of attempting to prevent OpenAI from becoming a public benefit corporation under its existing for-profit entity.
According to the court filing, Musk allegedly walked away from OpenAI after the company refused to merge with his company, Tesla. Despite pledging $1 billion to the startup, Musk failed to fulfill his commitment and instead founded his own AI firm, xAI, just one year after OpenAI launched ChatGPT. The lawsuit claims that Musk has launched a multi-front attack against OpenAI, using press attacks, social media campaigns, legal claims, and a bid for the company’s assets to harm the organization.
In response to Musk’s actions, OpenAI has counter-sued to stop him from derailing the company’s progress. In a recent tweet, the company stated, “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.”
Musk, on the other hand, has cited humanitarian concerns in his lawsuit against OpenAI. He has raised doubts about the organization’s motives to be a “humanitarian” operation while seeking to turn a profit. A federal judge has scheduled a jury trial for spring 2026 to address Musk’s concerns.
The legal battle between OpenAI and Musk is unfolding against a backdrop of Musk’s growing political entanglements with the Trump administration. Musk’s companies have faced criticism for his support of Trump’s policies, including deregulation and tariffs, leading to a decline in Tesla stock. The controversy surrounding Musk’s involvement in politics has further fueled the tension between him and OpenAI.
As the lawsuit continues to play out in court, the future of OpenAI and its innovative AI technologies remains uncertain. The clash between Musk and the AI company sets the stage for a high-stakes legal battle that could have far-reaching implications for the tech industry.