Musk wants to become 'AGI dictator,' tried to sabotage investor interest with 'fake' takeover bid: OpenAI claims in countersuit

OpenAI has filed a countersuit against Elon Musk, accusing the billionaire of launching a bogus acquisition attempt in a calculated effort to disrupt investment opportunities, undermine the company's mission, and gain a competitive edge for his AI startup, xAI. 

The filing, submitted in California court on Wednesday, paints Musk as a would-be "AGI dictator" whose campaign of "harassment, interference, and misinformation" poses a serious threat to OpenAI's operations and public interest in safe AI development.

OpenAI alleged that Musk's $97.375 billion bid to acquire the company was entirely fabricated, not based on OpenAI's performance or financials, but instead referencing a figure from Iain Banks' sci-fi novel Look to Windward — a nod to Musk's known affinity for the book. 

The offer, according to OpenAI, lacked credible financing and was never a genuine business proposal but a ploy to gain insider access to confidential information under the guise of due diligence.

The lawsuit claims that Musk's actions deliberately frightened off legitimate investors and impaired OpenAI's ability to fundraise. 

The company is seeking a jury trial and an injunction to block Musk’s "unlawful business practices," arguing that the billionaire is trying to dismantle OpenAI to benefit his own company, xAI, "at the expense of the public interest."

Musk's legal team pushed back on the allegations. Marc Toberoff, Musk's attorney, said OpenAI's claims were baseless.  

"Had OpenAI's Board genuinely considered the bid, as they were obligated to do, they would have seen just how serious it was," Toberoff said in a statement to Ars Technica. "It's telling that having to pay fair market value for OpenAI's assets allegedly 'interferes' with their business plans."

OpenAI's filing detailed an extensive history of Musk's alleged efforts to gain control of the company, dating back to 2018 when he proposed folding OpenAI into Tesla and demanded majority equity, board control, and the CEO title. 

The company claimed it rejected the offer because it conflicted with OpenAI's mission of preventing any single entity from monopolising the development of artificial general intelligence (AGI).

According to OpenAI, Musk was furious when denied control and predicted the company would fail without him. When it instead grew into a global AI leader, Musk quietly launched xAI in secret while publicly calling for a moratorium on AI development—an apparent effort to delay competitors. 

OpenAI claims Musk attempted to poach its employees, filed multiple legal claims, and encouraged regulatory scrutiny.

The countersuit also highlights Musk's alleged attempts to manipulate the media and his use of X (formerly Twitter) to spread disinformation and influence public sentiment against OpenAI. 

The mere possibility of a Musk-led takeover, OpenAI claims, threatens to repel top talent and derail its mission to build beneficial AGI. 

The company cited concerns that Musk’s xAI, which operates the Grok chatbot on X, has become a source of "misinformation and inflammatory political rhetoric."

OpenAI points to a public incident where xAI representatives admitted that Grok responded multiple times with statements such as "President Donald Trump and Musk deserve the death penalty," describing it as a "really terrible and bad failure."

In a post on X, however, OpenAI acknowledged Musk's stature in the tech world, calling him "undoubtedly one of the greatest entrepreneurs of our time." 

All the same, the company stressed that Musk never prioritised the public good. "Elon's never been about the mission—he’s always had his own agenda."

The lawsuit demands compensation for the costs incurred from entertaining Musk's bid, as well as punitive damages for alleged conduct described as "malicious, oppressive, and fraudulent."

OpenAI also accused Musk of attempting to damage its for-profit restructuring by misrepresenting its motives to early investors and regulators.

"You can't sue your way to AGI," the company said. 

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