OpenAI Countersues Elon Musk in Escalating Legal Dispute Over AI Business Moves

OpenAI has filed a counterclaim against Elon Musk, accusing him of unfair competition, interference with investor and customer relationships, and a campaign of harassment. The suit, filed in a California federal court, follows Musk’s earlier legal action against the company over its shift from nonprofit ideals to a for-profit model. OpenAI alleges that Musk’s controversial $97.4 billion bid in February 2025 was a strategic maneuver to destabilize its operations.

The legal drama, which has intensified since Musk—a founding investor who later ventured out to start his own AI firm, xAI—bespeaks deeper tensions within the competitive AI industry. Multiple reports, including those from the Associated Press, Reuters, and Axios, indicate that a jury trial is scheduled for March 2026, as both parties seek to resolve the conflict surrounding claims of deceptive practices and disruptive behavior.