Unfair Competition

OpenAI has countersued Elon Musk and his AI company xAI, accusing them of orchestrating a malicious campaign to disrupt its operations and funnel AGI development toward Musk’s interests. The lawsuit cites a $97.375 billion bid Musk made in February 2025—deemed unsubstantiated—as a strategic sham to fracture investor and employee ties during OpenAI’s transition to a Public Benefit Corporation. Filed in U.S. District Court, the suit alleges unfair competition and tortious interference, referencing Musk’s past demands for control, failed merger proposals, and smear campaigns via X. OpenAI claims Musk’s post-2018 actions, including founding xAI and advocating AI research freezes, have destabilized its mission-driven model amidst heightened regulatory and corporate pressure.