OpenAI Strikes Back: Countersues Elon Musk Over Alleged Bad-Faith Tactics in AI Power Struggle

In a dramatic escalation of a long-simmering feud, OpenAI has filed a counter-lawsuit against tech billionaire Elon Musk, accusing him of employing bad-faith tactics to undermine the organization and seize control of cutting-edge AI innovations for his personal gain. The announcement, made via OpenAI’s official newsroom account on X at 22:58 UTC on April 9, 2025, marks the latest chapter in a contentious legal battle that has captivated the tech world.

The counter-lawsuit comes in response to Musk’s earlier legal action against OpenAI, where he alleged the organization had abandoned its founding mission as a nonprofit dedicated to advancing AI for the public good. Musk, a co-founder of OpenAI in 2015, has been vocal about his disapproval of the company’s shift toward a for-profit model, a transition that began in 2019 and has since deepened through a multi-billion-dollar partnership with Microsoft. In his lawsuit filed in 2024, Musk claimed OpenAI’s pivot betrayed its original ethos and gave it an unfair competitive edge over his own AI venture, xAI, which he launched in 2023 to rival OpenAI’s ChatGPT.

In its X post, OpenAI accused Musk of “nonstop actions” aimed at slowing down the organization’s progress. The statement read:

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. Today, we counter-sued to stop him.

Follow-up posts from OpenAI’s newsroom account further elaborated on the allegations, claiming Musk has been spreading “false information” about the company’s intentions. OpenAI denied rumors that it plans to fully convert its nonprofit arm, asserting instead:

We’re actually getting ready to build the best-equipped nonprofit the world has ever seen – we’re not converting it away.

The organization also took aim at Musk’s motives, alleging that his actions stem from a failed attempt to merge OpenAI with Tesla as a for-profit entity. OpenAI stated:

Elon’s never been about the mission. He’s always had his own agenda. He tried to seize control of OpenAI and merge it with Tesla as a for-profit – his own emails prove it. When he didn’t get his way, he stormed off.

OpenAI provided a link to what it claims are Musk’s emails, though the authenticity of the documents has yet to be independently verified.

The legal battle has its roots in a seven-year rivalry between Musk and OpenAI CEO Sam Altman, a conflict that has increasingly played out in the public eye. According to a December 2024 report by the Associated Press, Musk and Altman have clashed over who should lead OpenAI and how to prevent AI from becoming an “artificial intelligence dictatorship.” Musk, an early investor and board member of OpenAI, left the organization in 2018 after disagreements over its direction. Since then, he has repeatedly criticized OpenAI’s partnership with Microsoft, which has invested over $13 billion in the company, and its shift away from its nonprofit origins.

The feud has drawn attention from other tech heavyweights, with Meta CEO Mark Zuckerberg joining Musk in opposing OpenAI’s for-profit transition, according to a December 2024 report by OpenTools.ai. The unlikely alliance between Zuckerberg and Musk underscores the broader industry debate over the ethics and organizational structures of AI companies, particularly as artificial general intelligence (AGI) looms on the horizon.

Reactions to OpenAI’s counter-lawsuit on X were swift and varied. Some users expressed shock at the escalating drama, with

@SaiyanLune commenting:

Shits getting real…

Others, like @ByronGoldberg, criticized OpenAI’s leadership, stating:

WahWahWah. Sam needs to go. We all know it.

Several users, including @ItIsPaulHere and @MomsTesla, took jabs at OpenAI by referring to it as “ClosedAI,” a nod to ongoing critiques that the organization has strayed from its open-source roots. @ItIsPaulHere wrote:

So you will change your name to ClosedAI then? Finally!

The legal showdown comes at a time of heightened scrutiny for OpenAI. A New York Times report from October 2024 highlighted strains in its partnership with Microsoft, citing financial pressures and internal disagreements. Meanwhile, the broader AI industry continues to grapple with ethical challenges, as evidenced by Google’s 2020 controversy over the removal of AI ethics researchers Timnit Gebru and Margaret Mitchell, a point raised in the OpenTools.ai report.

As the case heads to federal court, the tech world is watching closely. The outcome could have far-reaching implications for the future of AI development, the balance between profit and public good, and the personal legacies of two of the industry’s most influential figures. For now, OpenAI appears determined to defend its vision, while Musk shows no signs of backing down from the fight.

This is a developing story. More details will be provided as they become available.