OAKLAND, Calif. – The legal dispute between OpenAI and Elon Musk has intensified as OpenAI files a countersuit against Musk, alleging unfair competition and interference with business relations. The lawsuit marks a significant escalation in the conflict between the AI research company behind ChatGPT and the billionaire who initially supported its establishment.
The counterclaim was submitted in a California federal court on Wednesday in response to Musk's original lawsuit against OpenAI. The case is set to proceed to a jury trial the following year.
Musk, an early investor in OpenAI and now the head of his own AI venture, xAI, initiated legal action against OpenAI and CEO Sam Altman over a year prior. His initial lawsuit claimed breach of contract, asserting that OpenAI had deviated from its original mission as a nonprofit research institution.
In March, a federal judge rejected Musk's attempt to prevent OpenAI from operating as a for-profit entity but suggested an expedited trial to address Musk's grievances. While an earlier trial was proposed for later in the year, it has been rescheduled for March 2026.