OpenAI Sues Elon Musk for Harassment and Business Interference

Understanding the Legal Battle Between the xAI Founder and the Company Behind ChatGPT

OpenAI, globally recognized for developing ChatGPT, has filed a lawsuit against Elon Musk, co-founder of the company and current CEO of xAI. The central accusation is that Musk has been conducting a campaign of harassment and interference aimed at damaging OpenAI and favoring his own interests in the artificial intelligence sector.

What Prompted OpenAI’s Legal Action?

The dispute began after Musk, who left OpenAI in 2018, publicly criticized the company’s transition from a non-profit organization to a for-profit model. According to OpenAI, this change is essential to secure a $40 billion funding round and maintain its competitiveness in the market.

OpenAI alleges that Musk has employed various means to undermine the company, including:​

  • Negative campaigns on social media, where he has over 200 million followers;​
  • Harassing legal actions;​
  • A $97.4 billion acquisition offer, which OpenAI describes as fraudulent and intended to destabilize the company.

The company is requesting that the court prevent Musk from continuing these actions and hold him accountable for the damages already caused.

Elon Musk’s Response

Musk’s legal team asserts that the acquisition offer was legitimate and that OpenAI’s board failed to properly consider it. They argue that the proposal reflected the company’s fair market value and that its rejection indicates a lack of transparency on OpenAI’s part.

What’s at Stake?

This case highlights the growing tensions in the artificial intelligence sector, where companies compete for leadership and funding. OpenAI, despite its success with ChatGPT, faces financial challenges and needs to complete its transition to the for-profit model by the end of the year to secure the necessary investments.

The trial is scheduled for the spring of 2026, and its outcome could significantly influence the future of OpenAI, xAI, and the development of artificial intelligence in general.

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