OpenAI countersues Elon Musk over alleged takeover attempt

OpenAI has filed a countersuit against Elon Musk, accusing the billionaire of attempting a hostile takeover of the AI research company he co-founded.

The legal action comes in response to Musk’s ongoing lawsuit against OpenAI, which alleges the firm abandoned its nonprofit mission in favor of profit-driven motives.

In its countersuit, OpenAI claims Musk sought majority control of the company, proposing to convert it into a for-profit entity with himself as CEO.

Internal emails from 2015 to 2017 allegedly show Musk advocating for structural changes, including a merger with Tesla and appointing himself to control four out of seven board seats.

OpenAI co-founders reportedly rejected these proposals, warning they risked creating an “AGI dictatorship.”

The dispute escalated in 2018 when Musk resigned as co-chair after OpenAI declined his offer to spin the company into Tesla.

Years later, Musk filed a lawsuit in March 2025 seeking to block OpenAI’s transition to a capped-profit model and accusing the firm of prioritising profits over its original mission to benefit humanity.

OpenAI’s countersuit aims to block Musk’s alleged interference and seeks compensatory and punitive damages.

The company also released emails countering Musk’s claims, arguing he was an early proponent of a for-profit structure.

The feud highlights broader tensions in the AI industry.

OpenAI recently secured $40 billion in funding led by SoftBank, raising its valuation to $300 billion—nearly four times that of Musk’s rival AI startup, xAI.

Meanwhile, xAI merged with X last month in an $80 billion all-stock deal.

As the legal battle unfolds, both sides have presented conflicting narratives about OpenAI’s evolution and mission.

Musk continues to criticise OpenAI for its partnership with Microsoft and alleged departure from transparency, while OpenAI defends its efforts to balance innovation with ethical considerations.