Musk takes OpenAI to court

FILE PHOTO: Tesla and SpaceX's CEO Elon Musk pauses during an in-conversation event with British Prime Minister Rishi Sunak in London, Britain, Thursday, Nov. 2, 2023.
FILE PHOTO: Tesla and SpaceX's CEO Elon Musk pauses during an in-conversation event with British Prime Minister Rishi Sunak in London, Britain, Thursday, Nov. 2, 2023.
Kirsty Wigglesworth/Pool via REUTERS/File Photo

Tesla CEO Elon Musk sued OpenAI and its CEO Sam Altman late last week, saying that they breached the terms of a contract by prioritizing their profits over the public good. In 2015, Musk helped found and fund OpenAI, the artificial intelligence research lab-turned-industry leader. He resigned as co-chair of the company’s nonprofit board of directors in 2018, citing conflicts of interest with his own company, Tesla, which was investing heavily in AI.

Now, Musk alleges that OpenAI violated the terms under which he gave money to OpenAI, but no one seems to have written down those terms.

The Verge points out that the complaint hinges on the violation of a “Founding Agreement,” an alleged oral contract that Musk feels was formed in the course of business discussions. If a court finds that a contract was formed – and courts aren’t usually friendly to oral contracts – Musk is requesting that the court compel OpenAI to revert back to its original nonprofit mission, including making research data publicly available, instead of the profit-motivated one that’s turned it into a $80 billion juggernaut.

There’s one other thing that Musk-watchers should keep in mind: Musk currently runs an AI startup of his own, xAI, which has a chatbot called Grok. This means his business directly competes with OpenAI. Is it any wonder he’s resorting to litigation that could take OpenAI down a peg?

More from GZERO Media

European Commission President Ursula von der Leyen delivers the State of the European Union address to the European Parliament, in Strasbourg, France, September 10, 2025.
REUTERS/Yves Herman

While the European Union has never been more critical, it is also facing a trifecta of divisive challenges.

In this episode of “Local to global: The power of small business,” host JJ Ramberg sits down with Chapin Flynn, Senior Vice President of Transit and Urban Mobility at Mastercard, and Mark Langmead, Director of Revenue & Compass Operations at TransLink in Vancouver, to explore how cities are making transit easier, faster, and more seamless for riders–an approach known as frictionless urban mobility.

United States President Donald J Trump awaits the arrival Saudi Crown Prince Mohammed bin Salman Al Saud at the White House in Washington, DC, USA, on November 18, 2025. Featuring: Donald J Trump Where: Washington, District of Columbia, United States When: 18 Nov 2025
Credit: Anna Rose Layden/POOL via CNP
A photo taken on September 14, 2024, shows seafood at Jimiya fishing port in Qingdao, China, on September 14, 2024. On September 20, 2024, China and Japan reach a consensus on the issue of the discharge of contaminated water from the Fukushima Daiichi nuclear power plant, and China states that it will gradually resume the import of Japanese aquatic products that meet the regulations.
(Photo by Costfoto/NurPhoto)