Charles Esther
Elon Musk has filed a motion requesting a federal judge to dismiss OpenAI’s counterclaims in their ongoing legal dispute.
In the filing, Musk’s attorneys argue that his actions, including his $97.4 billion bid to purchase OpenAI’s assets and related complaints, are protected by the First Amendment and California’s litigation privilege.
This legal clash comes after OpenAI accused Musk of launching a relentless campaign to harm the company, which he co-founded.
In their filing, Musk’s legal team calls OpenAI’s claims legally hollow and argues that the AI lab has shifted away from its charitable mission.
Musk’s Lawyers Defend Actions as Protected Speech
The motion, filed on Wednesday, asserts that Musk’s actions fall within his rights to free speech.
Musk’s attorneys emphasized that the $97.375 billion offer to purchase OpenAI and related legal actions are part of his right to engage in public discourse and protect his interests.
Marc Toberoff, Musk’s lawyer, criticized OpenAI’s shift towards a profit-driven agenda under CEO Sam Altman.
Toberoff stated that the nonprofit model of OpenAI has become an inconvenience for Altman’s ambitions and that the counterclaims filed by OpenAI only underscore its betrayal of its charitable mission.
OpenAI’s Claims Against Musk
OpenAI’s countersuit, filed in April, accused Musk of waging a personal vendetta against the company since his departure in 2018.
The AI company claims that Musk’s press attacks, legal threats, and the $97.4 billion bid are part of a broader campaign to harm OpenAI.
OpenAI’s filing also described Musk’s February offer to purchase its assets as a “sham” and suggested that the bid amount was a trivial reference to a science-fiction character.
In response, Musk’s legal team insists that the bid was serious and well-backed, with the financial means to complete such a deal.
Musk Challenges OpenAI’s Nonprofit Status
In their filing, Musk’s legal team also challenged OpenAI’s recent restructuring decision.
OpenAI announced that it would not transfer control to a for-profit entity but would instead restructure its for-profit arm as a public benefit corporation.
Musk’s lawyers argue that this move is merely a façade, which does little to return OpenAI to its original public-serving charitable goals.
The Courtroom Showdown
As the legal battle intensifies, the case is now headed to court.
A first-phase trial for Musk’s breach-of-charity claims is scheduled for 2026, with U.S. District Judge Yvonne Gonzalez Rogers presiding over the proceedings.
This trial will set the stage for a high-stakes courtroom showdown between Musk and Altman, two of the original co-founders of OpenAI, who now lead competing AI ventures.
Impact on OpenAI’s Funding and Investor Confidence
OpenAI’s countersuit also claims that Musk’s bid could have harmed the company’s ability to raise capital, leading to a decrease in investor confidence.
However, Musk’s team challenges this argument, pointing out that OpenAI successfully raised an additional $40 billion in funding led by SoftBank after Musk’s bid.
Conclusion
As the legal dispute between Musk and OpenAI continues to unfold, the future of both companies and their AI ventures hangs in the balance.
With the trial scheduled for 2026, it’s clear that this battle is far from over, and it could have significant implications for the AI industry.
Musk’s legal team is confident that the countersuit will be dismissed, while OpenAI remains determined to protect its interests and mission.
Would this legal conflict signal a shift in the AI industry, or will Musk and OpenAI come to an agreement before the trial? Only time will tell.
