- OpenAI accuses Musk of sabotage and disruption via a fake $97B acquisition offer.
- Lawsuit claims Musk sought full control of OpenAI in exchange for solving funding issues.
- OpenAI alleges Musk’s actions aimed to boost xAI by harming its business and investor ties.
OpenAI has filed a lawsuit against Elon Musk, accusing the billionaire tech figure of attempting to sabotage the AI company through a pattern of disruption through what it calls a pattern of disruption – including an allegedly fraudulent acquisition proposal reportedly worth $97.375 billion.
The suit, filed in a California district court, seeks financial damages and orders (injunctive relief) intended to stop Musk’s alleged interference, claiming Musk’s actions aimed to harm OpenAI while benefiting his rival firm, xAI.
What Are OpenAI’s Core Allegations Against Musk?
The legal filing claims Musk first tried to gain control of OpenAI after unsuccessfully pushing for it to shift from its original nonprofit structure to a for-profit model with himself installed as CEO and majority shareholder. OpenAI alleges that internal emails, presented as evidence, show Musk proposing to take complete ownership in return for funding – an offer OpenAI declined.
The lawsuit goes on to assert that Musk later used public platforms and legal pressure to interfere with the company’s operations and partnerships.
“Musk has tried every tool available to harm OpenAI,” the complaint states, citing press statements, legal claims, and social media posts shared on X.
OpenAI claims his actions disrupted OpenAI’s relationships with current and potential investors, increasing operational burdens and raising employee concerns about possible instability.
Related: OpenAI Now Worth $300 Billion After Massive $40B Funding Round
Why Does OpenAI Call the $97B Offer a ‘Sham’?
OpenAI’s legal team argues that Musk’s $97.375 billion offer to buy the company was never genuine. According to the complaint, Musk provided no clear funding source behind the proposal, and the massive figure appeared disconnected from any standard business rationale.
The company even suggests, without naming it, that the number referenced Musk’s preferred science fiction series.
Related: Sam Altman’s $9.74B Twitter Offer To Elon Musk’s $97.4B OpenAI Bid
The complaint further claims that Musk’s actions were “intentionally designed” to interfere with OpenAI’s business and limit its ability to compete in the AI sector. The filing suggests that Musk sought to secure an advantage for his company, xAI, by undermining OpenAI’s credibility and stability.
How Does This Relate to Musk’s Earlier Lawsuit?
This legal action by OpenAI comes after Musk sued the organization himself back in March. Musk’s suit alleged OpenAI violated what he claimed was a “Founding Agreement” by abandoning its non-profit mission and failing to make its technologies open source.
OpenAI countered then that no such binding founding agreement existed in the way Musk described, and produced emails allegedly showing Musk was aware of and even supportive of the planned shift towards a for-profit structure.
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