Elon Musk Hits Again at OpenAI’s Declare He is Out to Sabotage the Firm

Elon Musk has requested a federal choose to dismiss OpenAI’s countersuit, calling it legally hole and an indication the AI lab has veered off its charitable mission.

In a 33-page movement filed Wednesday, attorneys for Musk and his AI firm, xAI, argued that the $97.375 billion letter of intent to purchase OpenAI’s property — and associated complaints — are lined by First Modification protections and California’s litigation privilege.

“The nonprofit is nothing greater than an inconvenience standing in the way in which of Altman’s profit-driven ambitions,” Musk’s lawyer Marc Toberoff mentioned within the submitting, referring to OpenAI’s CEO, Sam Altman.

“OpenAI’s counterclaims not solely fail as a matter of legislation, they verify OpenAI’s betrayal of its charitable mission, and the general public at giant,” Toberoff added.

In an April court docket submitting, OpenAI accused Musk of waging a “relentless” marketing campaign to hurt the corporate, together with press assaults, authorized threats, and a “sham” $97.4 billion bid — a part of what it referred to as a private vendetta after Musk left OpenAI in 2018.

Musk calls OpenAI’s company pivot a ‘façade’

Musk’s newest submitting, submitted on the Northern District of California court docket, comes after OpenAI mentioned on Monday it might not switch management away from its nonprofit in spite of everything.

The ChatGPT maker mentioned it might now restructure its for-profit arm as a public profit company, whereas retaining total management with its nonprofit mother or father — a transfer it says higher displays its mission.

Musk’s authorized staff is not satisfied. Within the Wednesday submitting, they referred to as the restructuring pivot “a façade that modifications nothing,” arguing that it does little to revive the nonprofit’s unique public-serving targets.

In its April submitting, OpenAI referred to as Musk’s February 10 letter of intent to buy OpenAI’s property a “sham” and steered its supply determine was a “joking reference” to a sci-fi character referred to as “974 Praf.” Musk’s staff, nevertheless, mentioned in its Wednesday submitting that the bid was actual, backed by funds able to closing a deal, and “had nothing to do with literary references.”

OpenAI’s countersuit mentioned the $97.4 billion supply may have shaken investor confidence or raised its price of capital. However Musk’s authorized staff mentioned Wednesday the grievance failed to call any buyers who walked away. Final month, OpenAI raised a further $40 billion in a spherical spearheaded by SoftBank.

The authorized conflict is now heading to court docket. US District Choose Yvonne Gonzalez Rogers has scheduled a first-phase trial for Musk’s breach-of-charity claims in 2026, teeing up a high-stakes courtroom showdown between two of the unique OpenAI cofounders now main competing AI ventures.

Legal professionals for OpenAI and xAI didn’t instantly reply to a request for remark from Enterprise Insider.