OpenAI Sues Elon Musk: Seeks to Halt 'Unlawful' Actions
OpenAI and Elon Musk's Ongoing Dispute
The contentious relationship between OpenAI and its former co-founder, Elon Musk, continues to escalate with no resolution in sight.
Legal representatives for OpenAI, alongside other defendants including CEO Sam Altman, submitted a filing on Wednesday requesting a court order to prevent Musk from “further unlawful and unfair action.” They also seek to hold him accountable for the damages already inflicted upon the defendants.
Countersuit Details
The filing for a countersuit asserts that “OpenAI is resilient,” but acknowledges the negative impact of Musk’s actions. It further states that continued attacks threaten OpenAI’s governance, essential relationships, and the broader public interest.
Specifically, the filing condemns Musk’s recent actions, including what is described as a “fake takeover bid” intended to disrupt OpenAI’s future plans, and demands these actions cease.
Musk's Response
Marc Toberoff, legal counsel for Musk, responded via email, stating that if OpenAI’s board had genuinely evaluated Musk’s earlier bid for the company’s nonprofit status – as they were obligated to do – they would have recognized its seriousness.
Toberoff further commented that the requirement to pay fair market value for OpenAI’s assets is being framed as an “interference” with the company’s business strategies.
Core of the Legal Battle
Musk’s lawsuit alleges that OpenAI has deviated from its original non-profit mission, which prioritized ensuring the benefits of AI research were accessible to all of humanity.
Founded as a non-profit in 2015, OpenAI transitioned to a “capped-profit” structure in 2019. Currently, management is pursuing a further restructuring into a public benefit corporation.
Previous Court Ruling
Musk previously requested a preliminary injunction to halt OpenAI’s shift towards a for-profit model. This request was denied in March by a federal judge, although the case is scheduled to proceed to a jury trial in spring 2026.
Once a significant supporter, Musk has now become a prominent critic of OpenAI. The outcome of this dispute carries substantial implications for the company.
OpenAI reportedly faces a deadline of 2025 to finalize its for-profit conversion, or it may be required to relinquish recently acquired capital.
External Pressure on OpenAI
A coalition of organizations, including non-profits and labor groups such as California Teamsters, have petitioned California Attorney General Rob Bonta to prevent OpenAI from becoming a for-profit entity.
These groups argue that OpenAI has “failed to protect its charitable assets” and is actively “subverting its charitable mission to advance safe artificial intelligence.”
Amicus Brief Support
Encode, a non-profit involved in sponsoring California’s unsuccessful SB 1047 AI safety legislation, expressed similar concerns in an amicus brief submitted in December.
OpenAI's Justification
OpenAI maintains that its conversion will preserve its non-profit division and provide it with increased resources for “charitable initiatives” in areas like healthcare, education, and scientific research.
In a series of posts on X (formerly Twitter) on Wednesday, the company stated, “We’re actually getting ready to build the best-equipped nonprofit the world has ever seen — we’re not converting it away.”
OpenAI further asserted that Musk’s motivations are not aligned with the company’s mission, claiming he “has always had his own agenda.”
Note: This report has been updated to include a statement from Musk’s attorney.
