OpenAI, Microsoft Push to End Elon Musk’s Lawsuit Over ChatGPT’s For-Profit Shift

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EU Eyes Microsoft OpenAI Stake

CALIFORNIA — OpenAI and Microsoft are seeking to shut down Elon Musk’s lawsuit accusing them of betraying the original nonprofit vision behind ChatGPT, calling the billionaire’s claims legally baseless in motions filed Thursday in California federal court.

The Musk OpenAI lawsuit dismissal effort comes as both companies argue that Musk, now on his third version of the complaint, still hasn’t proven any contractual or fraudulent promises were made—let alone broken—when OpenAI transitioned from a nonprofit to a for-profit structure.

“Now on his third complaint, Musk still cannot plead a contract or a fraudulent promise,” OpenAI said in its brief, noting that Musk’s framing of his financial contributions as a quid pro quo falls apart under scrutiny.

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OpenAI: “No False Promises, No Contract”

OpenAI asserts that Musk’s latest complaint offers no evidence of fraud or intent to deceive. “He says his charitable donations were not donations at all,” OpenAI’s attorneys wrote, “but the product of a quid pro quo. Yet the only well-pleaded allegations defeat rather than support that characterization.”

The company urged the court to dismiss the remaining claims with prejudice, citing Musk’s failure to allege that OpenAI made knowingly false promises at the time of the alleged agreement.

OpenAI has also filed a counterclaim, accusing Musk of relentless harassment and referencing a $97.4 billion “sham bid” Musk allegedly made for the company’s assets earlier this year.