U.S. Federal Court Rules Elon Musk Cannot Evade OpenAI’s Counterclaims
Recently, a U.S. federal court ruled that Elon Musk cannot evade OpenAI’s previous allegations of “years of various harassment.” The case is set to go to trial in March 2026.
Musk’s Attempt to Dismiss OpenAI’s Counterclaims Fails
According to Bloomberg, Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California rejected Musk’s motion to dismiss OpenAI’s counterclaims on August 13. OpenAI’s counterclaims accuse Musk of having defamed their organization and engaged in harassment through lawsuits, social media posts, and public statements over the past few years.
OpenAI stated that Musk’s actions are intended to benefit his own AI startup, xAI.
Three-Year Controversy Originating from Musk’s Lawsuit Against OpenAI
The dispute can be traced back to 2023 when Musk sued OpenAI, criticizing them for deviating from their founding mission as a “nonprofit organization.” He accused OpenAI of becoming a commercial entity since accepting billions in “financial support” from Microsoft beginning in 2019, the same year Musk stepped down from the board of OpenAI.
Following this, Musk founded his own AI company, xAI, which competes directly with OpenAI.
(Musk Accuses OpenAI of Colluding with Microsoft to Suppress xAI’s Development: Claims Loss of Over $40 Million, Altman and Stripe Engaged in Self-Serving Practices)
Judge States Both Sides Are “Hypocritical”
While the ruling did not assess the validity of OpenAI’s counterclaims, the judge explicitly indicated that OpenAI’s allegations have sufficient legal grounds to proceed to trial. The judge also rejected some of Musk’s claims against OpenAI and Microsoft, indicating that the legal proceedings are not entirely biased in Musk’s favor.
Notably, the judge criticized both parties for their “tactics,” pointing out contradictions on both sides:
“Both sides accuse each other of hypocrisy, and this strategic maneuvering is quite evident.”
Case Scheduled for March 2026 Hearing
As currently arranged, the trial between Musk and OpenAI is set to take place in March 2026 at the U.S. District Court in Oakland, California. Musk’s legal team has not yet responded to the court’s latest ruling.
(Altman Discusses AI Competition and Musk Conflict: He Just Wants to Integrate OpenAI into Tesla; The U.S. Needs to Increase Investment in AI Chips)
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