A legal battle has erupted between OpenAI and Elon Musk as the artificial intelligence research firm files a lawsuit accusing Musk of using underhanded methods to gain control over the company’s AI innovations.
The dispute adds another twist in the ongoing clash between two of Silicon Valley’s most powerful players.
The lawsuit, filed on Wednesday, claims that Musk—who helped found OpenAI but left the organization in 2018—has been working “nonstop” to disrupt the company’s progress for personal gain. OpenAI alleges that his actions aim to slow its growth and eventually seize control of its groundbreaking AI technologies.
The suit follows Musk’s own legal challenge from last year, in which he accused OpenAI CEO Sam Altman of steering the company away from its original non-profit mission of developing AI for the good of humanity. Musk has argued that OpenAI’s shift to a for-profit model breaches its founding agreement.
A federal judge in Oakland, California, has already set a March 2026 trial date for Musk’s suit and denied his request for an injunction that would have frozen OpenAI’s corporate restructuring. The court also expects Musk to testify when the case proceeds.
OpenAI’s countersuit paints a different picture. In a public statement, the company claims Musk is trying to undermine their work for his own business interests. They allege he has spread misinformation and attempted to derail their mission while developing his own rival venture, xAI.
xAI, Musk’s own artificial intelligence company, has made headlines recently by acquiring his social media platform X, formerly known as Twitter. Despite the high-profile moves, xAI remains behind in the AI race, with OpenAI’s products still leading the field. Musk has pegged the value of his new holding company, XAI Holdings, at over $100 billion.
The tension reached a new peak in February when Musk made an unsolicited bid to buy OpenAI for $97.4 billion. Sam Altman rejected the offer with a quip, suggesting they would be more interested in buying Twitter instead—for $9.74 billion.
Industry experts say the feud is more about power and money than principles. Ari Lightman, a digital media professor at Carnegie Mellon University, said the conflict has become a distraction from pressing issues like AI safety and ethics.
Observers worry that the public spat between Musk and OpenAI could divert attention from the broader goal of building AI systems responsibly. As both sides dig in for a lengthy legal battle, the future of AI development—and who gets to lead it—hangs in the balance.