OpenAI is suing Elon Musk for unfair competition and interfering with its business relationships with investors and customers, escalating a legal battle between the ChatGPT maker and the billionaire who helped bankroll the artificial intelligence startup a decade ago.
The allegations against Musk were filed Wednesday in a federal court in California as a counterclaim to the Tesla CEO's lawsuit against OpenAI, which is heading to a jury trial next year.
Musk, an early OpenAI investor who now runs his own AI firm, xAI, along with Tesla, SpaceX, social media platform X and President Donald Trump's Department of Government Efficiency, began a legal offensive against OpenAI and its CEO Sam Altman more than a year ago.
He first sued for breach of contract over what he said was the betrayal of its founding aims as a nonprofit research laboratory, and later expanded his claims.
A federal judge in March denied Musk’s request for a court order blocking OpenAI from converting itself to a for-profit company but said she could expedite a trial to consider Musk’s claims. She offered to hold a trial later this year, but it has been pushed back to March 2026.
In this week's counterclaim, OpenAI accuses Musk of making a “sham bid” in February to buy a controlling stake in the nonprofit.
Musk and a group of investors offered $97.4 billion for OpenAI's assets, a number that OpenAI said Musk pulled from the character 974 Praf in the science fiction novel “Look to Windward” by Scottish writer Iain Banks. Musk has also named some of his SpaceX machinery after ships in the book.
OpenAI said it “recognized the bid as a feint” but has repeatedly had to divert resources and “suffered harm as a result of Musk’s unlawful campaign of harassment, interference, and misinformation.”
Musk attorney Marc Toberoff responded in an email late Wednesday and said that if OpenAI's board of directors had “genuinely considered the bid, as they were obligated to do, they would have seen how serious it was.”
"It’s telling that having to pay fair market value for OpenAI’s assets allegedly ‘interferes’ with their business plans,” Toberoff wrote.
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The Associated Press and OpenAI have a licensing and technology agreement that allows OpenAI access to part of AP’s text archives.
FILE - The OpenAI logo appears on a mobile phone in front of a screen showing part of the company website in this photo taken on Nov. 21, 2023 in New York. (AP Photo/Peter Morgan, File)
DUBAI, United Arab Emirates (AP) — U.S. President Donald Trump and top Iranian officials exchanged dueling threats Friday as widening protests swept across parts of the Islamic Republic, further escalating tensions between the countries after America bombed Iranian nuclear sites in June.
At least eight people have been killed so far in violence surrounding the demonstrations, which were sparked in part by the collapse of Iran’s rial currency but have increasingly seen crowds chanting anti-government slogans.
The protests, now in their sixth day, have become the biggest in Iran since 2022, when the death of 22-year-old Mahsa Amini in police custody triggered nationwide demonstrations. However, the protests have yet to be as widespread and intense as those surrounding the death of Amini, who was detained over not wearing her hijab, or headscarf, to the liking of authorities.
Trump initially wrote on his Truth Social platform, warning Iran that if it “violently kills peaceful protesters,” the United States “will come to their rescue.”
“We are locked and loaded and ready to go,” Trump wrote, without elaborating.
Ali Larijani, a former parliament speaker who serves as the secretary of Iran’s Supreme National Security Council, alleged that Israel and the U.S. were stoking the demonstrations. He offered no evidence to support the allegation, which Iranian officials have repeatedly made during years of protests sweeping the country.
“Trump should know that intervention by the U.S. in the domestic problem corresponds to chaos in the entire region and the destruction of the U.S. interests,” Larijani wrote on X, which the Iranian government blocks. “The people of the U.S. should know that Trump began the adventurism. They should take care of their own soldiers.”
Larijani’s remarks likely referenced America’s wide military footprint in the region. Iran in June attacked Al Udeid Air Base in Qatar after the U.S. strikes on three nuclear sites during Israel's 12-day war on the Islamic Republic. No one was injured, though a missile did hit a structure there.
As of Friday, no major changes had been made to U.S. troop levels in the Middle East or their preparations following Trump’s social media posts, said a U.S. official, who spoke on condition of anonymity to discuss sensitive military plans.
In a letter late Friday to United Nations Secretary-General António Guterres and the U.N. Security Council, Iran's envoy asked the world body to condemn the rhetoric and reaffirm the country's "inherent right to defend its sovereignty, territorial integrity, and national security, and to protect its people against any foreign interference.”
“The United States of America bears full responsibility for any consequences arising from these unlawful threats and any ensuing escalation," said Amir Saeid Iravani, Iranian ambassador to the U.N.
Ali Shamkhani, an adviser to Supreme Leader Ayatollah Ali Khamenei who previously was the council’s secretary for years, separately warned that “any interventionist hand that gets too close to the security of Iran will be cut.”
Trump's online message marked a direct sign of support for the demonstrators, something other American presidents have avoided out of concern that activists would be accused of working with the West. During Iran's 2009 Green Movement demonstrations, President Barack Obama held back from publicly backing the protests — something he said in 2022 “was a mistake.”
But such White House support still carries a risk.
“Though the grievances that fuel these and past protests are due to the Iranian government’s own policies, they are likely to use President Trump’s statement as proof that the unrest is driven by external actors,” said Naysan Rafati, an analyst at the International Crisis Group.
“But using that as a justification to crack down more violently risks inviting the very U.S. involvement Trump has hinted at,” he added.
Iran’s Foreign Ministry spokesperson Esmail Baghaei recently cited a list of Tehran’s longtime grievances regarding U.S. intervention, including a CIA-backed coup in 1953, the downing of a passenger jet in 1988 and the strikes in June.
Protests continued Friday in various cities in the country, even as life largely continued unaffected in the capital, Tehran. Demonstrations have reached over 100 locations in 22 of Iran's 31 provinces, the U.S.-based Human Rights Activists News Agency reported. It said the death toll in the demonstrations rose to eight with the death of a demonstrator in Marvdasht in Iran's Fars province.
Demonstrators took to the streets in Zahedan in Iran's restive Sistan and Baluchestan province on the border with Pakistan. The burials of several demonstrators killed in the protests also took place Friday, sparking marches.
Videos purported to show mourners chasing off security force members who attended the funeral of 21-year-old Amirhessam Khodayari. He was killed Wednesday in Kouhdasht, over 400 kilometers (250 miles) southwest of Tehran in Iran's Lorestan province.
Footage also showed Khodayari's father denying his son served in the all-volunteer Basij force of Iran’s paramilitary Revolutionary Guard, as authorities claimed. The semiofficial Fars news agency later reported that there were now questions about the government's claims that he served.
Iran’s civilian government under reformist President Masoud Pezeshkian has been trying to signal it wants to negotiate with protesters. However, Pezeshkian has acknowledged there is not much he can do as Iran’s rial has rapidly depreciated, with $1 now costing some 1.4 million rials. That sparked the initial protests.
The protests, taking root in economic issues, have heard demonstrators chant against Iran’s theocracy as well. Tehran has had little luck in propping up its economy in the months since the June war.
Iran recently said it was no longer enriching uranium at any site in the country, trying to signal to the West that it remains open to potential negotiations over its atomic program to ease sanctions. However, those talks have yet to happen as Trump and Israeli Prime Minister Benjamin Netanyahu have warned Tehran against reconstituting its atomic program.
Associated Press writers Konstantin Toropin in Washington and Farnoush Amiri in New York contributed to this report.
A woman shows a portrait of the late commander of Iran's Revolutionary Guard expeditionary Quds Force, Gen. Qassem Soleimani, who was killed in a U.S. drone attack in 2020 in Iraq, on her smartphone during a ceremony commemorating his death anniversary at the Imam Khomeini grand mosque in Tehran, Iran, Thursday, Jan. 1, 2026. (AP Photo/Vahid Salemi)
People wave Iranian flags as one of them holds up a poster of the late commander of the Iran's Revolutionary Guard expeditionary Quds Force, Gen. Qassem Soleimani, who was killed in a U.S. drone attack in 2020 in Iraq, during a ceremony commemorating his death anniversary at the Imam Khomeini grand mosque in Tehran, Iran, Thursday, Jan. 1, 2026. (AP Photo/Vahid Salemi)
This combo shows President Donald Trump at Mar-a-Lago, Monday, Dec. 29, 2025, in Palm Beach, Fla. and Iranian Secretary of Supreme National Security Council Ali Larijani in Beirut, Lebanon, Wednesday, Aug. 13, 2025. (AP Photo/Alex Brandon, Bilal Hussein)
