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OpenAI Pushes to Keep Countersuit Against Elon Musk in Expedited Trial

By  |  June 1, 2025

OpenAI has urged a federal court to allow its countersuit against Elon Musk to move forward alongside the main legal proceedings, rejecting Musk’s attempt to delay or dismiss the claims. The company, known for its popular AI chatbot ChatGPT, contends that Musk’s motion to dismiss “has no grounding in facts,” according to a recent court filing reviewed by Reuters.

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    Filed late Wednesday, OpenAI’s legal brief insists that its counterclaims, which accuse Musk of fraudulent business practices under California law, deserve to be heard as part of the ongoing trial schedule. Per Reuters, OpenAI maintains that these allegations are central to the dispute and should not be sidelined for consideration at a later date.

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    The legal battle stems from Musk’s 2023 lawsuit against OpenAI and its CEO, Sam Altman. The Tesla and SpaceX leader, who co-founded OpenAI in 2015 but parted ways with the organization before it rose to prominence in the AI sector, claims that the company has abandoned its founding principles. Musk alleges OpenAI shifted its focus from public-benefit AI research to corporate profit-making, which he says violates the original mission.

    In April, OpenAI fired back with a countersuit, citing what it described as a persistent campaign of harassment by Musk. The company asked a federal judge to intervene and bar Musk from engaging in what it called further “unlawful and unfair action,” Reuters reported.

    Read more: Senator Warren Presses Pentagon on Competitive AI Contracts as Musk’s Grok Gains Traction

    Among the most contentious claims in OpenAI’s countersuit is its accusation that a $97.4 billion acquisition proposal from a Musk-led group was a “sham bid.” According to the filing, OpenAI believes the offer was never intended to be genuine and was instead crafted to generate media attention. The company claims the proposal was leaked to the press before its board had even reviewed it, undermining its legitimacy.

    Despite OpenAI’s recent decision to soften plans that would have reduced oversight by its non-profit board, Musk remains undeterred. His legal team has stated that the lawsuit will proceed regardless of those changes.

    Source: Reuters