OpenAI files countersuit against Elon Musk's 'bad faith' attacks

OpenAI has filed a countersuit against Elon Musk, accusing him of staging press attacks and malicious campaigns on "the social media platform he controls," as well as of making "harassing legal claims" and a "sham bid for OpenAI's assets." In its filing, courtesy of TechCrunch, the ChatGPT-maker said Musk could not tolerate seeing such "success for an enterprise he had abandoned and declared doomed" and had made it his own project to take down the organization. It also said that Musk's efforts have ramped up in recent months after it announced its plans to restructure and become a for-profit entity with a non-profit division. 

Last year, Musk sued OpenAI, accusing it of ditching its nonprofit mission, becoming a "closed-source de facto subsidiary" Microsoft and of violating its foundational agreement to develop generative AI "for the benefit of humanity." But Musk, OpenAI said in its new lawsuit, is only pretending to represent the public and in truth is seeking to stop it from restructuring. Musk "advised that a similar reorganization was needed to salvage OpenAI's mission" years ago when he was still part of the company, it said.

After Musk filed a lawsuit last year, OpenAI published old emails from when he was still involved in its operations. The organization said Musk was there when it first started talking about going for-profit and even wanted majority equity, control of the initial board of directors and the CEO position. It also published an email wherein Musk suggested merging OpenAI with Tesla so that the automaker could fund its work. Musk left OpenAI in 2018 and eventually founded his own generative AI company, xAI. The AI company recently purchased X, formerly known as Twitter, for $33 billion. 

In a tweet, OpenAI said that Musk's actions are just "bad-faith tactics to slow down OpenAI" and that he's spreading false information about the organization, as well as aiming to seize control of its technology for his personal benefit. In its lawsuit, it said that Musk "should be enjoined from further unlawful and unfair action" and should be "held responsible for the damage he has already caused." OpenAI has to complete its reorganization by the end of this year or its private funding could be cut by as much as $10 billion. 

In response, Musk's legal team told Reuters that if OpenAI had taken a close look at his offer for the company, then it would know that the bid was serious and not a sham. "It's telling that having to pay fair market value for OpenAI's assets allegedly 'interferes' with their business plans," Musk's lawyer Marc Toberoff told the news agency. 

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