Key Takeaways
- Elon Musk is pushing to have OpenAI’s countersuit against him thrown out of court.
- Musk argues OpenAI has strayed from its original charitable mission, prioritizing profit instead.
- This legal battle sets the stage for a significant courtroom showdown in 2026 between the former collaborators.
Elon Musk has formally asked a judge to dismiss a countersuit from OpenAI. He contends the AI lab’s legal action is without merit and shows it has lost sight of its founding charitable goals.
In a 33-page motion, lawyers for Musk and his company, xAI, stated that a $97.375 billion letter of intent to purchase OpenAI’s assets, along with related complaints, are protected under free speech and California’s litigation privilege.
Musk’s attorney, Marc Toberoff, was quoted in the filing saying, “The nonprofit is nothing more than an inconvenience standing in the way of Altman’s profit-driven ambitions,” referring to OpenAI’s CEO, Sam Altman. He added that OpenAI’s claims “confirm OpenAI’s betrayal of its charitable mission.”
This move follows an April court filing where OpenAI, as reported by Business Insider, accused Musk of a persistent effort to damage the company. OpenAI characterized this as a personal vendetta stemming from Musk’s 2018 departure, including attacks in the press and a “sham” $97.4 billion bid.
Recently, OpenAI announced it would not be transferring control away from its nonprofit. Instead, the maker of ChatGPT plans to restructure its for-profit division into a public benefit corporation, all while maintaining a nonprofit parent company, a move it says aligns with its mission.
However, Musk’s legal team remains skeptical. They described this restructuring as “a façade that changes nothing,” arguing it doesn’t genuinely restore the nonprofit’s initial public-service focus.
Regarding the controversial $97.4 billion offer, OpenAI previously labeled it a “sham” and a possible “joking reference.” Musk’s team, in their latest filing, insisted the bid was serious and backed by sufficient funds, denying any connection to literary references.
OpenAI had claimed Musk’s offer could have unsettled investors or increased its borrowing costs. Musk’s lawyers countered that OpenAI failed to identify any investors who had backed out, noting the company recently secured an additional $40 billion in funding.
The dispute is now advancing through the courts. U.S. District Judge Yvonne Gonzalez Rogers has scheduled the first phase of a trial concerning Musk’s breach-of-charity claims for 2026. This sets up a high-stakes confrontation between two figures who co-founded OpenAI but now helm competing AI ventures.
An OpenAI spokesperson told Business Insider, “Elon continuing with his baseless lawsuit only proves that it was always a bad-faith attempt to slow us down.”
