HIGHLIGHTS

The ongoing legal disputes between OpenAI and its co-founder Elon Musk escalate, as OpenAI files a countersuit.

In the latest court documents, OpenAI along with its CEO Sam Altman, and other defendants requested the court to prevent Musk from perpetrating any further “unlawful and unfair actions.”

Furthermore, they seek to hold Musk accountable for the damages he has allegedly inflicted on the defendants thus far.

The legal confrontation between OpenAI and the tech entrepreneur Elon Musk is intensifying, with OpenAI executing a countersuit against the billionaire, alleging a pattern of harassment. In a recent court filing made public on Wednesday, OpenAI and its CEO Sam Altman, accompanied by various other defendants, sought a court order to prohibit Musk from carrying out any more “unlawful and unfair actions.” They additionally emphasized the need for Musk to be held liable for the injuries he has already caused the defendants.

The countersuit articulates, “OpenAI is resilient, but Musk’s actions have taken a significant toll. Should his campaign continue, greater harm is imminent – threatening OpenAI’s ability to govern in alignment with its mission, jeopardizing the essential relationships necessary for advancing that mission, and undermining the public interest. […] Musk’s relentless attacks on OpenAI, which have recently culminated in a deceptive takeover attempt aimed at disrupting OpenAI’s future, must stop.”

For those who might not be familiar, Musk previously filed a lawsuit against OpenAI, claiming that the organization had betrayed its original nonprofit mission. Established in 2015 as a nonprofit entity, OpenAI transitioned to a “capped-profit” model in 2019, and it now plans to evolve into a public benefit corporation.

Musk has attempted to prevent this transition via a court order, but a judge dismissed his appeal in March. Nevertheless, the matter is still set to proceed to a jury trial scheduled for the spring of 2026. OpenAI is facing considerable stakes, as reports reveal that it needs to finalize its transformation to a for-profit entity by 2025; failure to do so may jeopardize some of the funding it has secured thus far.

In related news, various organizations, including the California Teamsters and other nonprofit groups, have urged California Attorney General Rob Bonta to intervene and halt OpenAI’s corporate transition. They argue that OpenAI “has failed to protect its charitable assets” and is willfully “subverting its charitable mission to advocate for safe artificial intelligence.”

In defense of its plans, OpenAI has asserted that this shift will only fortify its nonprofit division. “We’re actually preparing to establish the best-equipped nonprofit the world has ever seen — we are not abandoning our mission,” the company proclaimed on X.

Marc Toberoff, an attorney representing Musk, shared his thoughts with TechCrunch: “If OpenAI’s board had sincerely examined [Elon Musk’s earlier bid for OpenAI’s nonprofit status], as they were duty-bound to do, they would have recognized its seriousness. It is revealing that needing to compensate at fair market value for OpenAI’s assets supposedly ‘interferes’ with their business plans.”