San Francisco: The legal battle between Elon Musk and OpenAI has intensified ahead of a scheduled April trial, with fresh accusations, sharp exchanges on social media, and new court filings adding to the high-stakes dispute involving the ChatGPT maker and Microsoft.
Musk had originally filed a lawsuit in 2024 against OpenAI, later expanding it to include Microsoft, alleging that the artificial intelligence company had drifted away from its founding non-profit mission. The case has since widened in scope, with counter-allegations emerging around document handling, competition practices, and partnerships with major technology firms such as Apple.
The dispute now appears set for a courtroom showdown, with both sides publicly and legally escalating their claims.
Musk’s core allegations against OpenAI and Microsoft
In his lawsuit, Musk — one of OpenAI’s early backers — claims he contributed about $38 million (roughly ₹315 crore) to support the organisation when it was established as a non-profit AI research lab. He argues that OpenAI later shifted toward a profit-driven structure, closely aligned with Microsoft, in a way that violated its original commitments.
According to court filings, Musk is seeking damages estimated between $79 billion and $134 billion (approximately ₹6.5 lakh crore to ₹11 lakh crore), naming both OpenAI and Microsoft as defendants. He alleges that their partnership and commercial arrangements distorted the competitive landscape in generative AI and undermined the founding principles of the organisation.
OpenAI attempted to have the lawsuit dismissed, but the California judge overseeing the matter declined to throw it out at this stage and instead scheduled a trial to begin in April.
Altman’s public remarks ahead of trial
OpenAI CEO Sam Altman has publicly commented on the upcoming proceedings. In a post on X, he wrote: “Really excited to get Elon under oath in a few months, Christmas in April!”
The remark quickly drew attention online, signalling how personal and public the dispute between the two technology leaders has become. Musk and Altman were once collaborators in OpenAI’s early days, but their relationship has since deteriorated amid strategic and philosophical differences over AI development and commercialisation.
Altman also reshared a post by OpenAI Chief Security Officer Jason Kwon and added the word “concerning,” referring to new allegations involving Musk’s AI venture, xAI.
OpenAI accuses xAI of hiding and destroying documents
In a recent court filing tied to the broader legal fight, OpenAI has accused Musk’s company xAI of failing to produce key documents during the discovery phase of litigation and of using disappearing-message platforms for relevant communications.
OpenAI alleged that xAI engaged in the “systematic and intentional destruction of documents” connected to the case. According to the filing, xAI has produced “virtually nothing” in terms of internal records supporting its claims about competitive harm in the AI market.
The ChatGPT maker told the court that it requested internal documents from xAI to verify assertions that OpenAI’s partnerships — particularly with Apple — created barriers to entry in generative AI. It claims those materials have not been meaningfully provided.
OpenAI further alleged that xAI directed employees to use disappearing messaging tools such as Signal and X Chat for business discussions related to the dispute, even while preparing for litigation. It has asked the court to order xAI to stop using such tools for relevant communications and to appoint a neutral forensic inspector to examine possible evidence destruction.
xAI lawsuit over Apple–OpenAI partnership
The document dispute is linked to a separate lawsuit filed by xAI in August last year against OpenAI and Apple. That case challenges the companies’ decision to integrate ChatGPT capabilities into Apple’s Siri voice assistant.
Musk’s AI firm has argued that the partnership creates a monopolistic environment that suppresses fair competition in AI chatbots and assistants by embedding one provider deeply into a dominant mobile ecosystem.
OpenAI, in response, says xAI must substantiate those claims with internal records and market analysis — material it says has not been properly disclosed so far.
Broader implications for the AI industry
The overlapping lawsuits come at a time when competition in generative AI is accelerating, with major players including OpenAI, Microsoft, Google, Apple, and Musk’s xAI racing to secure platform-level integrations and enterprise customers.
The April trial in Musk’s original lawsuit could have far-reaching consequences, especially regarding OpenAI’s corporate structure, its relationship with Microsoft, and how courts interpret founding charters versus later commercial pivots in AI companies.
Conclusion
What began as a philosophical disagreement over OpenAI’s direction has now evolved into a multi-front legal war involving billions of dollars, rival AI models, and Big Tech partnerships. With a trial date set and accusations mounting on both sides, the Musk–OpenAI conflict is entering its most consequential phase yet.