OpenAI Sues Elon Musk, Alleges Harassment and Takeover Attempts

OpenAI has launched a counterclaim against billionaire Elon Musk in federal court, accusing him of harassment and attempting an unsolicited $97.4 billion takeover of the artificial intelligence pioneer.

The filing, submitted Wednesday in the U.S. District Court for the Northern District of California, seeks to halt Musk’s alleged attacks and demands damages for what OpenAI calls a pattern of “unlawful and unfair” actions.

The legal salvo intensifies a bitter feud between Musk, a co-founder of OpenAI in 2015, and the company he left before its ChatGPT-driven ascent.

OpenAI alleges Musk has bombarded it with public criticism via his 200 million X followers, demanded sensitive internal records, and pursued baseless legal challenges — all while pushing a “sham bid” to seize control.

The clash stems from Musk’s earlier lawsuit against OpenAI, which claimed the firm abandoned its non-profit roots by pursuing a for-profit model.

A federal judge rejected Musk’s bid for a preliminary injunction in March 2025, though the case is set for a jury trial in spring 2026. OpenAI, now racing to secure a $40 billion fundraising round tied to its transition by year-end, insists its non-profit core remains intact.

The company plans to establish a public-benefit corporation, with the non-profit retaining a significant stake to bolster its mission.

Musk, who founded rival AI firm xAI in 2023, has framed OpenAI’s restructuring as a betrayal of its humanitarian goals. OpenAI counters that its evolution aligns with long-term stability, dismissing Musk’s actions as self-serving.

As legal proceedings loom, the dispute highlights the fierce rivalry shaping AI’s future — and the personal stakes driving it.