Elon Musk’s attempt to acquire OpenAI is generating legal tensions, as his lawsuit contests the transition of the AI company toward a for-profit model. OpenAI submitted a letter to a federal court on Wednesday outlining these conflicts.
On Monday, Musk, backed by a group of investors, proposed a staggering $97.4 billion (approximately Rs. 8,45,924 crore) acquisition bid for the assets of OpenAI’s nonprofit arm. This move represents Musk’s ongoing scrutiny of the artificial intelligence sector.
In August, Musk initiated legal action against OpenAI’s CEO Sam Altman and other executives, seeking a court injunction to prevent the organization from shifting to a for-profit structure.
In its recent letter, OpenAI accused Musk of hypocrisy, claiming he is making “an improper bid to undermine a competitor.”
Musk argues that OpenAI’s assets should remain tethered to a charitable trust and not be converted for private benefit. This position stands in stark contrast to his proposal, which seeks to reallocate all of OpenAI’s assets to himself and his investors, according to OpenAI’s assertions.
No representatives for Musk have responded to requests for comment via email.
Musk was a co-founder of OpenAI alongside Altman in 2015 but departed before the launch of ChatGPT, which gained immense popularity in late 2022. He subsequently established the competing AI venture xAI in 2023.
OpenAI has indicated its intent to transition into a for-profit organization to secure the necessary funding for advancing its AI developments.
© Thomson Reuters 2025
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