OpenAI countersued Elon Musk Wednesday, citing a pattern of harassment by Musk and asking a federal judge to stop him from any “further unlawful and unfair action” against OpenAI, in a court case over the future structure of the firm that helped launch the AI revolution. Musk and OpenAI CEO Sam Altman co-founded OpenAI in 2015, but Musk left before the company became a technology star. Recently Musk, who went on to create his own AI firm, xAI, in 2023, has tried to prevent the ChatGPT maker from transitioning to a for-profit model, culminating in the current court case. In order for OpenAI to secure the entire $40 billion of its current fundraising round, the company must complete its transition by the end of the year.

OpenAI is suing Elon Musk for unfair competition and interfering with its business relationships with investors and customers, escalating a legal battle between the ChatGPT maker and the billionaire who helped bankroll the artificial intelligence startup a decade ago. The allegations against Musk were filed Wednesday in a federal court in California as a counterclaim to the Tesla CEO’s lawsuit against OpenAI, which is heading to a jury trial next year. Musk, an early OpenAI investor who now runs his own AI firm, xAI, along with Tesla, SpaceX, social media platform X and President Donald Trump’s Department of Government Efficiency, began a legal offensive against OpenAI and its CEO Sam Altman more than a year ago.

In December 2024, Musk asked a court to stop OpenAI from transitioning into a for-profit entity, Reuters reported. He also submitted an unsolicited bid of $97.4 billion to take over OpenAI earlier this year, which was rejected. "The ensuing campaign has been relentless. Through press attacks, malicious campaigns broadcast to Musk’s more than 200 million followers on the social media platform he controls, a pretextual demand for corporate records, harassing legal claims, and a sham bid for OpenAI’s assets, Musk has tried every tool available to harm OpenAI," the company wrote in its countersuit. "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," the lawsuit also said.