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OpenAI Countersues Elon Musk, Cites Plan to Take Over Board
Key Takeaways
- OpenAI claims Elon Musk tried to take over the company by offering funds in return for control of the board and CEO position;
- The lawsuit centers on a $97 billion bid OpenAI calls fake, with demands for damages and legal steps to block Musk from future involvement;
- Emails show Musk proposed a for-profit shift in 2015 and later set up a company to hold OpenAI’s IP, which the founders rejected.
OpenAI has filed a countersuit claiming Elon Musk tried to take control of the organization through unfair tactics.
The company says it has emails showing Musk pushed for changes that would have given him control of the board and future direction.
The lawsuit focuses on a $97 billion offer that OpenAI calls fake. The group also wants money for damages and a court order to stop Musk from getting involved again.
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Although Musk has said OpenAI moved away from its nonprofit goals, the group said in an April 10 post on X that he was the one who first suggested turning it into a for-profit company—if he was in charge.
According to emails included in the filing, Musk raised questions about OpenAI’s structure as early as 2015. He suggested changing it to a mix of a regular company and a nonprofit to better align goals.
In September 2017, Musk reportedly made a formal push for control. He offered funding in exchange for leadership, saying he wanted to appoint most of the board and become CEO. One email quoted him saying:
I would unequivocally have initial control of the company.
OpenAI also claims Musk had his team create a separate for-profit business called Open Artificial Intelligence Technologies, Inc. This company would hold OpenAI’s intellectual property, according to the complaint. The idea was rejected by the other founders, who said it could lead to a situation where one person had too much control.
Meanwhile, Sarah Wynn-Williams, a former Meta executive, recently planned to testify before US lawmakers about the company's behind-the-scenes dealings with Chinese officials. What are her allegations? Read the full story.