- OpenAI has filed a countersuit against Elon Musk, accusing him of attempting a hostile takeover of the company.
- Released emails show Musk allegedly pushed for OpenAI to become for-profit with him as CEO and in control of the board.
- OpenAI seeks damages and injunctive relief against what it calls Musk’s “bad-faith tactics” to slow down the company.
OpenAI has filed a countersuit against Elon Musk, alleging the Tesla CEO attempted a hostile takeover of the AI research company he co-founded. The legal action, which includes emails OpenAI claims prove their case, accuses Musk of employing “bad-faith tactics” and pushing a “self-serving narrative” about the company’s mission and structure.
The countersuit seeks to block what OpenAI describes as Musk’s “campaign of harassment and disruption,” centered on a purported $97 billion takeover bid. The company is pursuing compensatory and punitive damages alongside injunctive relief to prevent further interference, according to court documents filed this week.
“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,” OpenAI’s newsroom posted on X. The company also shared internal emails they claim show Musk initiating the idea of converting OpenAI to a for-profit entity.
While Musk has publicly criticized OpenAI for abandoning its nonprofit mission, the company alleges these emails reveal Musk was actually the first to suggest restructuring—provided he maintained control. In November 2015, Musk reportedly wrote to CEO Sam Altman that a “standard C corp with a parallel nonprofit” would better align incentives.
The Push for Profit and Control
According to the emails released by OpenAI, Musk’s stance evolved in mid-2017 when the company’s computing needs grew with its Dota 2 experiments. By July 13, 2017, Musk allegedly acknowledged a for-profit model might be necessary, later citing China‘s AI ambitions as another reason to “change course.”
OpenAI claims that by September 2017, Musk made his move, pushing to become CEO with “initial control” over the board in exchange for capital investment. Emails show him proposing a structure where he would appoint four of seven board members, writing: “I would unequivocally have initial control of the company.”
The company alleges Musk even directed his team to incorporate a for-profit shell company called Open Artificial Intelligence Technologies, Inc., intending to transfer OpenAI’s intellectual property to this new entity.
The Rejection and Aftermath
OpenAI’s co-founders reportedly rejected these terms, warning that Musk’s proposed structure risked creating an “AGI dictatorship.” According to the countersuit, Musk replied: “Discussions are over. I will no longer fund OpenAI.”
In January 2018, Musk allegedly suggested incorporating OpenAI into Tesla, claiming it was the only way to secure the billions needed to compete with Google. By February 2018, after the team declined this proposal, Musk resigned as co-chair and left the company.
The countersuit comes in response to Musk’s March 2024 lawsuit against OpenAI, which sought to block its transition to a capped-profit structure. A U.S. judge denied the injunction but approved an expedited trial for fall 2025.
Meanwhile, Musk has launched xAI, a rival AI startup that recently merged with X in an $80 billion valuation deal—significantly less than OpenAI’s recent $300 billion valuation following a $40 billion funding round led by SoftBank.
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