Elon Musk’s legal battle with OpenAI continues as his lawyer requested a judge dismiss allegations that Musk is using legal tactics, social media posts, and press attacks to damage OpenAI’s progress for his benefit. The billionaire is aiming to gain an advantage for his generative AI startup, xAI. Musk’s request came just days after OpenAI backed away from a plan to restructure itself as a for-profit entity, a move Musk and others had criticised as a departure from OpenAI’s original non-profit mission. OpenAI instead confirmed it would keep the nonprofit structure but overhaul its for-profit division to become a public benefit corporation.
Musk’s lawyer, Marc Toberoff, dismissed OpenAI’s new plan, arguing that it changes nothing and continues to undermine OpenAI’s charitable roots. Musk’s ongoing lawsuit accuses OpenAI of betraying its mission, especially after taking billions in funding from Microsoft, a deal Musk believes signals the company’s shift towards profit-driven goals. The legal clash between Musk and OpenAI’s CEO, Sam Altman, who co-founded OpenAI with Musk, is escalating with each passing month.
READ MORE: Elon Musk Moves Forward with Lawsuit Against OpenAI Despite Nonprofit Control Stance
The case also involves Musk’s accusations that OpenAI strayed from its charitable path when it started accepting substantial investments from Microsoft. Musk’s xAI, launched in 2023, competes with OpenAI, and his legal team insists that OpenAI’s actions harm its original purpose. In response, OpenAI countersued in April, claiming Musk’s efforts to damage the company have led to strained relationships with investors and clients.
The case, set to unfold in court, is preparing for a high-stakes showdown between the two billionaires. A federal judge in California has set a trial date for March 2026, where Musk will challenge OpenAI’s restructuring plan, potentially marking a defining moment for both Musk’s ambitions and the future of OpenAI. The lawsuit is officially listed under Musk v. Altman, US District Court, Northern District of California, Oakland.
This ongoing legal dispute underscores the tension between innovation and business interests, as Musk and Altman fight over the direction and ownership of one of the most influential AI projects in the world.
