Billionaire tech mogul Elon Musk has officially filed a lawsuit against OpenAI and its CEO Sam Altman, following a dramatic fallout over a $100 billion acquisition offer Musk reportedly made to take full control of ChatGPT, which Altman turned down.
According to verified online reports and court filings obtained by The New York Times and Reuters, Musk alleges that OpenAI has strayed from its original mission as a non-profit, open-source research organization. The lawsuit, filed in San Francisco Superior Court, accuses the company of breaching its founding agreement and calls for a return to the foundational values of transparency and public benefit.
Musk’s Key Allegations
In the lawsuit, Musk highlights the following:
He was one of the original co-founders of OpenAI and personally coined the name “OpenAI”, emphasizing its intended mission to develop AI for the benefit of humanity—not for commercial gain.
Musk claims he contributed over $50 million to fund OpenAI during its early years, under the condition that it remain a non-profit and open-source initiative.
The lawsuit alleges that after Musk's departure in 2018, Sam Altman and other executives restructured OpenAI into a capped-profit entity and later established a highly lucrative partnership with Microsoft, reportedly worth over $13 billion, which Musk claims violates the original founding principles.
Musk argues that his financial support was philanthropic, not intended to be exploited for “selfish financial interests”, as he puts it.
Rejected $100 Billion Offer
The breaking point came after Elon Musk reportedly made an offer to acquire OpenAI and its flagship product ChatGPT for $100 billion, which Altman and the OpenAI board declined. Musk’s team claims the rejection was rooted in corporate greed, asserting that the current leadership prioritizes monetization over mission.
Legal Stakes & Timeline
The legal battle is set to intensify, with court proceedings scheduled to begin in March 2026. Legal experts say the outcome could have far-reaching consequences for AI governance, tech ownership, and corporate ethics in Silicon Valley.
If the court rules in Musk’s favor, he could potentially regain full ownership of ChatGPT—without paying the $100 billion price tag he initially offered. This would mark a historic shift in the AI landscape, positioning Musk as the sole controller of one of the most powerful generative AI platforms on the planet.
Background: The OpenAI Controversy
Musk has previously criticized OpenAI and ChatGPT on several occasions, warning of the dangers of AI being monopolized by profit-driven entities. In 2023, he launched a rival AI company called xAI, which he said would operate with full transparency and alignment with public interest.
OpenAI, meanwhile, has not released an official statement regarding the lawsuit but is expected to respond in court.
Stay tuned for continuous updates on this explosive legal showdown at the intersection of tech innovation, ethics, and corporate accountability.
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