Ray Wang, founder of Constellation Research, discusses the financial conflict that started between Elon Musk and Openai’s Sam Altman.
Openai intensified its legal confrontation with Elon Musk by responding to claims from the CEO of Tesla and Xai, stating that they had “explored all possible tools to cause damage” in the lawsuit.
The court filing submitted on Wednesday in California’s U.S. District Court comes as the creators of CHATGPT are contesting Musk’s lawsuits aimed at blocking the organization from transitioning to a profit-driven model. Reuters reported that a judge recently indicated the trial is set to proceed next spring.
“Elon’s relentless actions against us are a dishonest attempt to hinder Openai and seize control of significant AI advancements for his personal benefit. Today we responded to prevent him,” Openai stated via X.
The lawsuit requests the judge to stop Musk from “engaging in further illegal and unfair activities” and to “acknowledge the harm he has already inflicted.”
Openai is set to close $40 billion in funding. Its current valuation surpasses that of McDonald’s and Chevron
Openai CEO Sam Altman secured control of the company after turning down proposals from SpaceX and Tesla’s Elon Musk. (Shawn Gallup/Andrew Harnik/Getty Images/Getty Images)
The countersuit began by noting that Musk collaborated with Openai’s founder to establish the organization as a nonprofit; however, they resisted “Musk’s demands for leadership over the company, or for Tesla’s integration.”
“Thus, Musk proclaimed that Openai would collapse without his involvement and that he would concentrate on AI development at Tesla,” it elaborated. “Years later, in 2022, Openai unveiled ChatGpt, an AI chatbot that garnered extensive attention and users. ChatGpt propelled Openai into a new spotlight. Musk had no role in this.”
“Musk could not accept the notable success of companies he left behind and declared an intention to undermine Open and create a rival entity aimed at securing a technical advantage for himself, not for the benefit of humanity,” the lawsuit further indicated.
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Openai is recognized as the developer of ChatGpt. (Jaque Silva / Nurphoto Via / Getty Images)
In December 2024, Musk petitioned the court to halt Openai’s shift to a profit-oriented entity, as reported by Reuters. He also put forward an unsolicited proposal worth $97.4 billion earlier this year to acquire Openai, which was turned down.
“The subsequent campaign became obsessive. Through media assaults and deceptive campaigns directed at over 200 million followers on Musk’s platform, he employed all means to harm Openai, including false allegations, harassment through legal action, and bogus offers for Openai’s assets.
“Openai remains steadfast, and its core team, investors, and collaborators recognize that Musk’s accusations are simply selfish and untrue. Yet, Musk’s actions have caused real harm.
Elon Musk (Left) and Sam Altman were seen together during an event at the Vanity Fair New Summit in San Francisco in October 2015. (Michael Kovac / Getty Images for Vanity Fair / Getty Images)
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“Investors, partners, and employees observed what transpired at Twitter when Musk took over in 2022. The company’s worth significantly declined, and business relationships frayed.
Eric Revell from Fox Business contributed to this report.
