 "OpenAI accuses Elon Musk of contradicting his own lawsuit with takeover bid")
OpenAI has hit back at Elon Musk’s $97.4 billion takeover offer, claiming it directly contradicts his ongoing lawsuit against the company. In a letter submitted to a federal court on Wednesday, OpenAI pointed out the irony of Musk’s move—while he insists in court that OpenAI’s assets should not be used for private gain, he is now leading a bid to buy the company’s for-profit division along with a group of private investors.
Musk’s takeover attempt is the latest twist in an escalating battle between the billionaire and the AI firm he co-founded in 2015. His lawsuit, filed last August, argues that OpenAI is violating its original mission by shifting toward a for-profit model. At the same time, he is now offering billions to acquire the company’s assets—something OpenAI says is a blatant contradiction.
Musk’s legal and business moves collide
In its court filing, OpenAI accused Musk of making “an improper bid to undermine a competitor”, arguing that his legal claims and business actions are at odds. His lawsuit asserts that OpenAI’s assets should remain in a charitable trust and not be transferred for personal or corporate gain. Yet, his acquisition offer would do exactly that—shifting OpenAI’s assets into the hands of himself and his private investors.
Musk has been openly critical of OpenAI’s transition to a for-profit model, claiming it goes against the principles the company was founded on. However, OpenAI argues that securing private investment is necessary to continue developing cutting-edge AI technology.
Musk vs OpenAI: A growing rivalry
Musk was once deeply involved with OpenAI but walked away in 2018, long before ChatGPT became a global sensation in late 2022. Since then, he has positioned himself as a major critic of the company’s leadership, particularly CEO Sam Altman. In 2023, he launched his own AI venture, xAI, further deepening the rivalry.
With Musk now attempting to buy OpenAI while also suing it, the battle is becoming increasingly complex. If his lawsuit succeeds, OpenAI may be forced to abandon its for-profit shift—but if his takeover bid gains traction, Musk could end up controlling the very company he claims is going against its founding principles.
For now, OpenAI’s board has not publicly responded to the offer, but it’s clear that Musk’s legal fight and his business ambitions are now colliding in a way that could reshape the future of one of the world’s most influential AI companies.
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