OpenAI, the developer behind ChatGPT, has filed a motion requesting a federal judge to dismiss a lawsuit by tech billionaire Elon Musk, claiming that it is primarily an act of harassment. The ongoing legal feud between Musk and OpenAI centres on allegations of fraud and breach of contract, with Musk claiming the company strayed from its original mission.
Musk, a co-founder of OpenAI who left the company in 2018, launched the lawsuit in March 2024, accusing the organisation of violating the Racketeer Influenced and Corrupt Organizations Act (RICO), among other legal complaints. These allegations include claims that OpenAI abandoned its non-commercial, open-source goals in favour of prioritising Microsoft’s business interests.
OpenAI’s Response to Legal Accusations
The motion, filed on Tuesday in the U.S. District Court for the Northern District of California, challenges the legal validity of Musk’s claims. It argues that the accusations lack substantial evidence and are part of an effort by Musk to undermine OpenAI for his own competitive advantage. Musk recently launched his own artificial intelligence platform, Grok, via X (formerly Twitter).
“This lawsuit is the latest in Elon Musk’s campaign to harass OpenAI for competitive gain,” OpenAI’s filing stated, stressing that Musk’s RICO allegations, particularly regarding wire fraud, are unsupported by facts. According to the motion, Musk’s claims are based on an implausible theory that OpenAI CEO Sam Altman and other executives corrupted the company from within.
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Standing and Fiduciary Duty Challenges
Central to Musk’s claims is the assertion that OpenAI betrayed its founding agreement, which outlined the company's original vision of open-source technology for public benefit. Musk contends that this mission was abandoned when OpenAI pivoted to prioritising commercial gains, particularly through its partnership with Microsoft.
OpenAI’s legal team, however, disputes Musk’s standing to make such claims. The motion argues that under California law, Musk does not have the authority to bring forward allegations related to fiduciary duty or false advertising because he no longer holds a formal role within the non-profit. Furthermore, the company denies that any fraudulent promises were made to Musk, dismissing these claims as exaggerated interpretations of contract disputes.
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Musk’s Changing Legal Strategy
Musk’s lawsuit marks the latest escalation in a series of legal actions. He first sued OpenAI in March 2024, accusing the company of prioritising profit over its original goal to advance AI "for the benefit of humanity."
However, he withdrew that complaint in June, only to refile it in August with additional allegations. The new lawsuit claimed that OpenAI had misled Musk into financing the organisation, which later transitioned into a for-profit entity.
OpenAI’s legal team has responded by asking the court to throw out the case entirely, characterising Musk’s claims as legally baseless and driven by personal motives.
The dispute between Musk and OpenAI highlights the ongoing tension surrounding the company’s evolution from a non-profit AI research group to a commercial entity. While Musk insists that OpenAI has strayed from its original mission, the company maintains that his lawsuits are unsubstantiated and primarily aimed at gaining a competitive edge in the AI sector.
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