What began as a collaboration to construct secure and open AI has changed into a fierce private and authorized battle. The feud has grown over time and is now threatening to sluggish OpenAI’s progress, simply as the worldwide race to dominate the unreal intelligence enviornment gathers tempo.
The place did all of it start, and the way has it performed out? ET takes a glance.
The OpenAI vs Elon Musk timeline
December, 2015: OpenAI is based by Musk, Altman, and 9 others as a non-profit AI analysis lab centered on transparency and open entry. Musk contributes the preliminary funding of $45 million to get it began.
The group says its goal is to develop digital intelligence for the good thing about all humanity, with out being pushed by monetary acquire. The corporate was created partly in response to Google’s rising energy in AI.
February, 2018: Musk leaves OpenAI after disagreements over its future route. In response to OpenAI, Musk proposed to both grow to be the CEO or merge the corporate with Tesla. When these ideas weren’t accepted, he selected to step away.
March, 2019: OpenAI restructures right into a “capped-profit” entity referred to as OpenAI LP. This new mannequin permits the corporate to boost funds extra aggressively whereas limiting investor returns. The shift marks a transparent departure from the unique non-profit construction that Musk had supported.
July, 2023: Musk launches xAI, a separate AI firm. The brand new enterprise brings collectively engineers who had beforehand labored at firms reminiscent of Google, Microsoft, and OpenAI.
xAI goals to problem main gamers within the subject, together with OpenAI.
February, 2024: Musk information a lawsuit towards OpenAI and Altman, accusing them of transferring away from the organisation’s authentic mission. He claims the corporate is working to maximise earnings for Microsoft, certainly one of its main backers.
Musk information the lawsuit in his capability as a donor to OpenAI’s non-profit mum or dad.
June, 2024: Musk unexpectedly withdraws the lawsuit with out providing any clarification.
August, 2024: Musk refiles the lawsuit, once more accusing OpenAI of abandoning its founding goal. He additionally seeks to dam the corporate’s shift towards a for-profit mannequin. Nonetheless, Altman argues that the change is important for OpenAI’s continued growth and success.
February, 2025: Musk leads a consortium of traders providing $97.4 billion to amass management of OpenAI’s non-profit mum or dad organisation. His goal is to deliver OpenAI again consistent with its authentic non-profit mission and regain affect over its future route.
The OpenAI board unanimously rejects the supply. Altman mocks the proposal on social media and information channels, and Musk responds with insults, escalating the feud.
April, 2025: OpenAI information a countersuit towards Musk, citing a sample of harassment. The corporate asks a federal choose to dam Musk from persevering with what it calls “illegal and unfair motion” towards OpenAI.
A jury trial for the case is anticipated to happen in spring 2026.
September, 2025: xAI information a lawsuit in federal courtroom in San Francisco, accusing OpenAI of a “deeply troubling sample” of hiring away former xAI staff to realize entry to confidential info associated to Grok, xAI’s AI chatbot.
xAI claims Grok is extra superior than ChatGPT and that OpenAI is attempting to realize an unfair benefit.
October, 2025: OpenAI asks the courtroom to dismiss xAI’s lawsuit. It denies all allegations and describes the case as a part of Musk’s ongoing efforts to harass the corporate.
“Beneath Musk’s management, gifted xAI staff are leaving in droves, and a few are coming to OpenAI to assist advance OpenAI’s mission,” the submitting stated. “These staff have each proper to go the place they select, and OpenAI has the appropriate to rent them.”
The authorized battle between Musk and OpenAI continues, with both sides accusing the opposite of unhealthy religion. OpenAI says Musk is attempting to disrupt its progress and divert consideration from xAI’s struggles, whereas Musk appears decided to problem the corporate by means of authorized motion and public criticism.
Whereas the battle is enjoying out in public, the courtroom trials anticipated in 2026 might form the way forward for each firms.
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