^{Source: Forbes}

OpenAI Files Lawsuit Against Musk Amid Intensifying Tech Rivalry

In a bombshell legal move, OpenAI filed a comprehensive lawsuit on Wednesday, April 10, 2025, against tech mogul Elon Musk, accusing him of orchestrating a calculated and “unlawful campaign of harassment” against the artificial intelligence pioneer he helped co-found a decade ago. The lawsuit was filed in a San Francisco federal court—just weeks after the same court blocked Musk’s attempt to reverse OpenAI’s transformation from a nonprofit research lab into a for-profit enterprise.

The 45-page legal filing seeks punitive damages, a court-ordered injunction, and an end to Musk’s alleged efforts to interfere in OpenAI’s operations and business trajectory.

“He Tried Every Tool to Harm Us,” Claims OpenAI

The lawsuit alleges that Musk, who now owns and controls Tesla, SpaceX, social media platform X, and AI rival xAI, has repeatedly used his vast media influence and legal firepower to disrupt OpenAI’s success.

“Through press attacks, coordinated smear campaigns to his 200+ million followers on X, fake legal claims, and even a sham corporate acquisition bid, Musk has done everything in his power to hurt OpenAI,” the company stated in its filing.

OpenAI accuses Musk of acting out of jealousy and vengeance after the AI lab—originally co-founded by Musk and Sam Altman in 2015—rose to unprecedented success, particularly after launching ChatGPT, which now has over 500 million weekly users and is expected to generate $13 billion in revenue in 2025.

The $97 Billion Takeover Plot—and a $300 Billion Valuation

The rift between Musk and OpenAI deepened significantly earlier this year when Musk-led interests submitted a $97.4 billion takeover bid for control of OpenAI. The company’s board swiftly rejected the offer, which Musk’s legal team insists was legitimate and should have been seriously considered.

“Had OpenAI’s Board genuinely considered the bid as they were obligated to, they would have seen how serious it was,” said Musk’s attorney, Marc Toberoff, in an emailed statement.

Just weeks later, OpenAI completed a successful investment round, boosting its valuation to $300 billion, underscoring the growing confidence of institutional backers in the AI giant’s commercial model and long-term strategy.

xAI and the Personal Grudge: Musk’s Parallel AI Ambitions

Musk’s own AI startup, xAI, was founded in mid-2023, mere months after OpenAI's ChatGPT exploded in popularity. In March 2025, Musk confirmed that X (formerly Twitter) had acquired xAI in a stock swap deal, integrating xAI's capabilities with his broader tech ecosystem.

OpenAI’s lawsuit argues that Musk’s inability to dominate the AI sector from within OpenAI led him to create a rival and discredit the organization publicly.

“Musk could not tolerate seeing such success for an enterprise he had walked away from and publicly declared doomed,” the lawsuit states.

A Decade-Long Relationship Gone Sour

The legal feud highlights a stunning reversal from 2015, when Musk and Altman co-founded OpenAI with the vision of building safe, democratized artificial general intelligence (AGI). Musk eventually stepped away in 2018, reportedly due to disagreements over direction and governance—though many sources suggest the split was driven by Musk’s frustration at not gaining full control.

Since then, Musk has become increasingly vocal against OpenAI, especially criticizing its strategic partnership with Microsoft, which now provides critical infrastructure and investment to OpenAI’s operations.

Court Asked to Silence Musk’s “Sabotage”

OpenAI is not merely asking for financial penalties—it’s also seeking a court-ordered injunction to permanently bar Musk from making further public or legal attempts to interfere in the company’s affairs.

“Musk’s continued attacks on OpenAI—culminating in a fraudulent takeover bid designed to destabilize the company’s future—must cease,” the complaint states. “We ask the court to enjoin further unlawful and unfair actions and to hold Musk accountable for the damage already inflicted.”

Industry Analysts React: “AI’s Apple vs. Android Moment”

According to AI industry analyst Karen Chiu of FutureTech Watch, the legal feud represents a pivotal moment in the artificial intelligence arms race.

“This is more than a personal feud—it’s shaping up to be AI’s Apple vs. Android moment. Elon Musk and Sam Altman represent two radically different philosophies about the future of AI,” Chiu said.

What Happens Next?

With OpenAI's valuation soaring and its tools embedded in industries from healthcare to finance, the stakes are higher than ever. Legal experts believe the case could set a precedent for how disputes are resolved between founders and their former companies in high-growth, high-stakes sectors.

The court’s ruling could not only impact the future of OpenAI, but also shape public discourse around corporate governance, ethical AI development, and the limits of founder influence in Silicon Valley’s most powerful companies.

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