The feud between Elon Musk and OpenAI has just escalated, with the Sam Altman-led company openly accusing Musk of bullying its employees and trying to undermine its work. The allegations came in a detailed X post, where OpenAI responded to Musk’s latest lawsuit by calling it part of an “ongoing harassment campaign.”
What triggered this?
Musk’s AI startup, xAI, has filed lawsuits against OpenAI, accusing it of stealing trade secrets and engaging in unfair hiring practices. He has also criticized OpenAI’s structure, arguing that its shift from a nonprofit to a profit-driven model betrayed its original mission.
OpenAI fired back, saying Musk’s claims have no legal basis. “We will protect our employees and won’t be intimidated by his attempts to bully them,” the company wrote.
Musk’s past with OpenAI
OpenAI also revisited its rocky history with Musk, who was one of its early backers. According to internal accounts and emails shared in the post, Musk once demanded majority control of OpenAI’s board and the CEO position when the company considered becoming a for-profit in 2017. When those demands were rejected, OpenAI says Musk withheld funding he had promised, forcing other investors like Reid Hoffman to step in to cover salaries.
In 2018, Musk reportedly suggested that Tesla could become OpenAI’s financial engine to help it compete with Google’s DeepMind, but even then admitted Tesla’s resources might not be enough.
The lawsuits explained
–Trade secrets & hiring practices: OpenAI insists it does not need or want xAI’s intellectual property, calling Musk’s lawsuit “groundless.” It argues that recruiting researchers from across the industry is legal and standard practice.
-Apple partnership concerns: Musk has also argued that integrating ChatGPT into iPhone features is anticompetitive. OpenAI lawyers dismissed this, saying xAI failed to prove any real harm.
–“Lawfare” accusation: OpenAI claims Musk is using lawsuits as a weapon to intimidate employees and bog the company down with legal distractions.
Bigger picture
The clash comes as OpenAI’s valuation reportedly hit $500 billion, surpassing SpaceX, one of Musk’s most prized companies. Investors like SoftBank, Thrive Capital, and Abu Dhabi’s MGX have poured billions into the ChatGPT maker, underlining its dominance in the AI race.
For now, the courtroom battle continues, but the fight is about much more than legal filings. It’s a struggle for influence, control, and leadership in the booming artificial intelligence industry.
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