OpenAI Countersues Elon Musk, Accuses Him of 'Bad-Faith Tactics' to Seize Control of AI

San Francisco: The battle over the future of artificial intelligence has taken a dramatic legal turn. OpenAI has filed a countersuit against Elon Musk, accusing the billionaire entrepreneur of launching a campaign of “bad-faith tactics” to stall the company’s progress and gain control over its cutting-edge AI technology.

The countersuit, filed on Wednesday, intensifies a bitter feud between two of Silicon Valley’s most high-profile figures—Elon Musk, the CEO of Tesla and founder of xAI, and Sam Altman, CEO and co-founder of OpenAI. The two were once collaborators, having co-founded OpenAI in 2015 to develop AI for the benefit of humanity. Musk left the organization in 2018 amid growing disagreements.

“Elon’s nonstop actions against us are just bad-faith tactics to slow down OpenAI and seize control of the leading AI innovations for his personal benefit,” the company said in a sharply worded statement. “Today, we countersued to stop him.”

Legal Duel Escalates

Musk first sued OpenAI and Altman earlier this year, alleging the company had strayed from its original non-profit mission and had violated the terms under which it was founded. A federal judge in Oakland, California, has since scheduled a trial for March 2026, aiming to expedite the legal proceedings.

Judge Yvonne Gonzalez Rogers previously declined Musk’s request for an injunction that would block OpenAI’s transition from a non-profit to a for-profit structure. She also confirmed that Musk would be expected to provide testimony in the case.

At the core of Musk’s argument is the claim that OpenAI’s restructuring undermines its stated mission to ensure artificial general intelligence (AGI) benefits all of humanity. OpenAI, in contrast, argues Musk has been spreading false information and pursuing a personal vendetta under the guise of public interest.

“Elon’s never been about the mission. He’s always been about his own agenda,” OpenAI stated via a post on X (formerly Twitter).

Rivalry Deepens with xAI and Social Media Moves

The legal clash comes as Musk’s own AI venture, xAI, seeks to challenge OpenAI’s dominance in the space. In a bid to consolidate his influence, Musk recently merged xAI with his social media platform X, forming XAI Holdings, a firm he claims is now valued at over $100 billion.

OpenAI also revealed that Musk made an unsolicited bid to acquire the company for $97.4 billion in February. CEO Sam Altman publicly rejected the offer with a quip: “No thank you but we will buy Twitter for $9.74 billion if you want.”

A Fight Over Control, Not Principles

Experts say the legal wrangling is more about control than altruism.

“This is about control. This is about revenue. It’s basically about one person saying, ‘I want control of that start-up,’” said Ari Lightman, professor of digital media and marketing at Carnegie Mellon University.

Lightman noted that the litigation serves as a distraction from more pressing issues in AI, such as safety, regulation, and equitable access.

“That takes a backseat with all this rigmarole over control and monetization,” he added.

Musk’s Legal Team Fires Back

Musk’s attorney, Marc Toberoff, issued a statement criticizing OpenAI’s board for rejecting the acquisition bid without due consideration.

“Had OpenAI’s Board genuinely considered the bid, as they were obligated to do, they would have seen just how serious it was,” Toberoff said. “It’s apparent they prefer to negotiate with themselves on both sides of the table than engage in a bona fide transaction in the best interests of the charity and the public.”

As both sides prepare for a long legal battle, the case is likely to set critical precedents around non-profit-to-profit transitions, AI governance, and founder rights in emerging tech enterprises.