OpenAI Countersues Musk, Alleging ‘Harassment’ and “Sham Bid”

ChatGPT creator OpenAI has fired back at Elon Musk, accusing him of “harassment” and “unfair action” in a new countersuit filed in U.S. federal court. The lawsuit claims Musk—who co-founded OpenAI but left in 2018—launched a personal campaign to disrupt the company’s transition from a non-profit research lab to a for-profit AI powerhouse. This dispute comes after Musk, through his company xAI and other investors, made a surprise $97.4 billion offer to buy OpenAI in February—an offer OpenAI swiftly rejected.

According to OpenAI, Musk’s legal attacks began more than a year ago, claiming the AI venture had strayed from its original mission by prioritizing profit. Musk dropped that initial suit but refiled again last August, piling on allegations of “corporate betrayal.” In Wednesday’s filing, OpenAI says Musk crossed the line by leveraging his massive following on X (formerly Twitter) to orchestrate “malicious campaigns,” all while using “press attacks” and “sham bids” to undercut the company.

OpenAI now seeks a court order preventing further action by Musk, plus damages for the reputational harm it claims to have suffered. The countersuit also references Musk’s own AI startup, xAI, as part of a broader bid to derail OpenAI’s progress. For its part, the ChatGPT developer recently raised $40 billion in new funding, bringing its valuation to about $300 billion—a signal that it still has strong backing, despite the ongoing legal drama.