In Oakland, California, OpenAI is taking legal action against Elon Musk for allegedly engaging in unfair competition and disrupting its relationships with investors and customers. This marks a new development in the ongoing legal dispute between the creator of ChatGPT and the billionaire who was involved in funding the AI startup ten years ago.

The accusations against Musk were made in a counterclaim filed in a California federal court, as part of the legal battle that is set to go to trial next year. Musk, once an early investor in OpenAI and now running his own AI company, xAI, initiated legal proceedings against OpenAI and its CEO Sam Altman over a year ago. His lawsuit alleged breach of contract, claiming that OpenAI had strayed from its original non-profit research focus.

While Musk's request for a court injunction to prevent OpenAI from changing its status to a for-profit entity was denied by a federal judge in March, she offered to accelerate the trial to address Musk's concerns. Initially planned for later this year, the trial has been rescheduled to March 2026.