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OpenAI countersues Elon Musk in legal dispute over ChatGPT maker's business ambitions

TECH

OpenAI countersues Elon Musk in legal dispute over ChatGPT maker's business ambitions
TECH

TECH

OpenAI countersues Elon Musk in legal dispute over ChatGPT maker's business ambitions

2025-04-10 23:33 Last Updated At:23:40

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)

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)

HONG KONG (AP) — Fireworks are typically a celebratory centerpiece of Hong Kong's New Year celebrations. Not this year.

The territory will ring in 2026 without spectacular and colorful explosions in the sky over its iconic Victoria Harbor after a massive fire in November that killed at least 161 people.

The city’s tourism board will instead host a music show Wednesday night featuring soft rock duo Air Supply and other singers in Central, a business district that also is home to the famous nightlife hub Lan Kwai Fong. The facades of eight landmarks will turn into giant countdown clocks presenting a three-minute light show at midnight.

Fireworks have long been part of the city’s celebrations for the New Year, Lunar New Year and National Day. The pyrotechnic displays against Hong Kong’s world-famous skyline of skyscrapers typically draw hundreds of thousands of people including many tourists to both sides of the promenade.

Rosanna Law, the territory's secretary for culture, sports and tourism, acknowledged Tuesday that having no fireworks would affect some hotel and restaurant businesses.

The financial hub’s worst blaze since 1948 broke out at Wang Fuk Court, in the northern suburban district of Tai Po, in late November. The apartment complex was undergoing a monthslong renovation project with buildings covered by bamboo scaffolding and green netting.

Authorities have pointed to the substandard netting and foam boards installed on windows as contributing factors in the fire’s rapid spread. Thousands of affected residents have moved to transitional homes, hotels and youth hostels, struggling to recover from the loss of lives and homes that took them years to buy. The casualties pained many residents across the city.

Past tragedies in Hong Kong have forced similar cancellations of fireworks. They include the 2013 National Day festivities following a vessel collision that killed 39 people on Oct. 1, 2012, and the 2018 Lunar New Year celebration after a bus crash that left 19 dead. During the 2019 anti-government protests and the COVID-19 pandemic, multiple displays also were scrapped.

The origin of fireworks is believed to date to China in the second century B.C., when someone discovered bamboo stalks exploded with loud bangs when thrown into fire, creating the first natural “firecrackers,” according to the American Pyrotechnics Association, a U.S. trade group.

The Guinness World Records organization says the first accurately documented firework, the Chinese firecracker, was created by Li Tian, a monk from China’s Tang dynasty dating to around 618 to 907 C.E. Li discovered that putting gunpowder in enclosed hollow bamboo stems created loud explosions and bound crackers together to create the traditional New Year firecrackers to drive out evil spirits, Guinness said.

People gather at Lan Kwai Fong to celebrate the start of 2026 in the Central district of Hong Kong, Wednesday, Dec. 31, 2025. (AP Photo/Chan Long Hei)

People gather at Lan Kwai Fong to celebrate the start of 2026 in the Central district of Hong Kong, Wednesday, Dec. 31, 2025. (AP Photo/Chan Long Hei)

People attend the New Year countdown event to celebrate the start of 2026 in the Central district of Hong Kong, on Wednesday, Dec. 31, 2025. (AP Photo/Chan Long Hei)

People attend the New Year countdown event to celebrate the start of 2026 in the Central district of Hong Kong, on Wednesday, Dec. 31, 2025. (AP Photo/Chan Long Hei)

People take selfies at Lan Kwai Fong to celebrate the start of 2026 in the Central district of Hong Kong, on Wednesday, Dec. 31, 2025. (AP Photo/Chan Long Hei)

People take selfies at Lan Kwai Fong to celebrate the start of 2026 in the Central district of Hong Kong, on Wednesday, Dec. 31, 2025. (AP Photo/Chan Long Hei)

People pose for photographs at Lan Kwai Fong to celebrate the start of 2026 in the Central district of Hong Kong, on Wednesday, Dec. 31, 2025. (AP Photo/Chan Long Hei)

People pose for photographs at Lan Kwai Fong to celebrate the start of 2026 in the Central district of Hong Kong, on Wednesday, Dec. 31, 2025. (AP Photo/Chan Long Hei)

FILE - Fireworks explode over Victoria Harbour to celebrate the start of 2025 at Tsim Sha Tsui in Hong Kong, Jan. 1, 2025. (AP Photo/Chan Long Hei, File)

FILE - Fireworks explode over Victoria Harbour to celebrate the start of 2025 at Tsim Sha Tsui in Hong Kong, Jan. 1, 2025. (AP Photo/Chan Long Hei, File)

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