OpenAI Countersues Elon Musk To Prevent His ‘Sham Bid For OpenAI’s Assets’

OpenAI has filed a counterclaim against Elon Musk, accusing the mercurial tech exec of trying "every tool available to harm OpenAI."
OpenAI Countersues Elon Musk To Prevent His ‘Sham Bid For OpenAI’s Assets’
Written by Matt Milano

OpenAI has filed a counterclaim against Elon Musk, accusing the mercurial tech exec of trying “every tool available to harm OpenAI.”

OpenAI is in the midst of a transition to a for-profit structure, something that Musk opposes. Musk has filed a lawsuit, claiming that the terms under which he initially invested in the AI startup prohibits it from pivoting to a for-profit.

In the meantime, OpenAI has fought back, releasing emails proving that Musk wanted OpenAI to be a for-profit operation from the get-go, and accusing him of trying to use legal action to harm OpenAI in the interest of giving his own AI startup, xAI, a competitive advantage.

Musk has upped the ante, launching a $97.4 billion takeover attempt of OpenAI, although few believe he is serious and is instead using the “takeover attempt” as a further way to sabotage OpenAI’s plans.

In its counterclaim, OpenAI says Musk is continuing his campaign to harm the company.

Those efforts have only intensified in recent months, as OpenAI has announced a possible restructuring that would see the existing for-profit entity under the nonprofit OpenAI, Inc.become a public benefit corporation, allowing it to better compete for capital and top talent in service of the mission to develop AGI for the benefit of humanity. Pretending to represent the public, Musk seeks to prevent that restructuring—even though, years ago, he advised that a similar reorganization was needed to salvage OpenAI’s mission. Musk peddles the false claim that OpenAI is planning to “convert” from a nonprofit into a for-profit enterprise. He does so knowing the nonprofit not only would continue to exist, but would be one of the best-resourced in history.

OpenAI is asking the court to enjoin Musk from continuing his campaign against the company.

OpenAI is resilient, and the employees, investors, and partners at the core of its mission recognize that Musk’s claims are as meritless as they are self-serving. But Musk’s actions have taken a toll. Should his campaign persist, greater harm is threatened—to OpenAI’s ability to govern in service of its mission, to the relationships that are essential to furthering that mission, andt o the public interest. Investors, partners, and employees saw what happened to Twitter when Musk took it over in 2022: the company’s value plummeted, business partners were left hanging, most employees were sent packing, and the business was ultimately absorbed into Musk’s AI company.Musk’s continued attacks on OpenAI, culminating most recently in the fake takeover bid designed to disrupt OpenAI’s future, must cease. Musk should be enjoined from further unlawful and unfair action, and held responsible for the damage he has already caused.

OpenAI’s counterclaim demonstrates the difficult situation the company is in as a result of Musk’s actions, and the harm he is causing. Given his platform, both as owner of X and head of DOGE, Musk has significant resources at his disposal to continue his efforts to destroy OpenAI. It’s little wonder OpenAI is turning to the court for relief.

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