OpenAI has sued Elon Musk. The company claims he is trying to damage the company he helped start. OpenAI filed the case in a California federal court. This is the latest fight over the future of a major AI company. On Wednesday, OpenAI submitted legal documents. It said Elon Musk, who co-founded OpenAI in 2015, left before it became well-known. Since then, he has tried to disrupt the company’s progress. OpenAI accused Musk of using his platform X, legal threats, and a failed takeover bid to block its shift to a for-profit model. The company asked the court to stop Musk’s “unlawful and unfair” actions. It also wants him to pay for the “damage he has already caused.”

Musk’s Battle with OpenAI

Musk created his own AI company, xAI, in 2023. He often criticizes OpenAI. Last year, he sued the company and its CEO, Sam Altman. Musk said they abandoned their nonprofit goal to build AI “for the benefit of humanity.” He claimed they now focus too much on making money.

OpenAI’s leaders disagree. In their countersuit, they accused Musk of filing “harassing legal claims,” attacking them in the media, and trying to buy the company through a “sham bid.” In the court filing, OpenAI wrote, “Through press attacks, malicious campaigns broadcast to Musk’s more than 200 million followers on the social media platform he controls… Musk has tried every tool available to harm OpenAI.”

OpenAI said Musk wants to slow them down or take over their technology for his gain.

Earlier this year, Musk led a group that made a $97.4 billion offer to buy OpenAI. The company rejected it. Musk’s lawyer, Marc Toberoff, responded. He said the board failed to consider the offer properly. “It’s telling that having to pay fair market value for OpenAI’s assets allegedly ‘interferes’ with their business plans,” Toberoff said.

AI Race Heats Up

OpenAI is working to change its business structure. It plans to become a “capped-profit” company. That system will allow investments but limit how much investors earn. The company needs up to $40 billion to stay competitive in the global AI race.

OpenAI said it must complete the change by the end of 2025. That way, it can unlock its full fundraising potential. However, it believes Musk is trying to block this process. So, OpenAI asked the court to stop him from further interference.

This lawsuit adds pressure to a case that already heads to trial next spring.

Meanwhile, OpenAI slammed Musk in a post on X: “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.”