Skip to main content
The Markets by Proactive
Go to Proactive UK
Proactive UK has moved. Proactive’s coverage of London’s small caps continues on proactiveinvestors.com Go there →
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Aerospace

OpenAI counter-sues Elon Musk in escalating legal battle over AI control

OpenAI filed a counterclaim against Elon Musk on Wednesday, accusing the billionaire entrepreneur of unfair competition and interfering with its business relationships.

The counterclaim comes in response to Musk’s lawsuit, which accuses OpenAI of betraying its nonprofit mission and shifting to a for-profit model under CEO Sam Altman.

OpenAI claims Musk has engaged in a “bad-faith” campaign to disrupt its operations and seize control of its technology for personal gain.

The company asserts that Musk’s $97.4 billion bid to acquire a controlling stake in OpenAI was a “sham” designed to undermine its mission.

“We’re actually getting ready to build the best-equipped nonprofit the world has ever seen – we’re not converting it away,” OpenAI emphasized in its filing, defending its commitment to nonprofit status.

Musk, who leads Tesla, SpaceX, and xAI, previously expressed mistrust of OpenAI, stating, "I don't trust OpenAI and Sam Altman. I don't think we want to have the most powerful AI in the world controlled by someone who is not trustworthy."

The legal battle is set to intensify with a jury trial scheduled for next year. Musk’s earlier attempt to block OpenAI’s shift was rejected by a federal judge, though the trial is now delayed until March 2026.

In the counterclaim, OpenAI alleges Musk’s actions have harmed the company, diverting resources and damaging relationships.

Musk’s attorney, Marc Toberoff, dismissed these claims, suggesting OpenAI’s board failed to seriously consider the bid and that their resistance was financially motivated.

Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK