Breaking: Elon Musk Renews Lawsuit Against Sam Altman’s OpenAI

Elon Musk renewed a lawsuit against Sam Altman's OpenAI as the AI giant breached its founding contract and prioritized commercialization.
By Coingape Staff
Updated May 28, 2025
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Highlights

  • Elon Musk sues OpenAI and co-founders.
  • The feud that began six year's ago with Microsoft's collaboration takes a new turn.
  • A closer look into Musk and Altman's AI chronicles.

The renowned American entrepreneur Elon Musk has once again made global headlines, re-escalating a lawsuit against Sam Altman’s OpenAI. According to a recent report, the Tesla and SpaceX lead is again suing the AI giant and its co-founders Sam Altman and Greg Brockman over breachment of the company’s founding contract. With the abovementioned lawsuit’s refiling, the six-year-old feud that began with OpenAI’s collaboration with Microsoft takes a new turn.

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Elon Musk Sues OpenAI & Its Co-founders

Notably, the renewed lawsuit claims that Sam Altman’s AI firm ditched its founding contract by prioritizing commercial interests over public good. The latest lawsuit by Musk comes as a follow-up of a previously filed lawsuit by the Tesla CEO on the same grounds, although it was subsequently withdrawn.

Elon Musk co-founded OpenAI alongside Altman and Greg, aiming for AI development for the betterment of the public good. However, Musk claims that the AI firm’s multibillion-dollar partnership with Microsoft has breached the original founding contract.

Intriguingly, the Tesla CEO had earlier withdrawn the initial lawsuit without offering a rational explanation. However, the latest lawsuit claims that Musk was “betrayed by Mr. Altman and his accomplices,” pointing toward the AI firm’s priority of commercial interests.

Furthermore, the suit alleges that Sam Altman & Greg did not hold up to their promise to open-source the firm, instead offering Microsoft the exclusive license. Filed in a federal court, the lawsuit also alleges that the co-founders purposely misled the Tesla CEO while teaming up to create OpenAI.

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Musk Vs. Altman

The feud that began six years ago with Microsoft’s partnership, as mentioned above, has taken a riveting turn today. It’s worth noting that Elon Musk resigned from OpenAI’s board of directors in 2018, filing two lawsuits against the AI firm down the line.

Besides, the American entrepreneur ventured upon building and launching his own AI startup, xAI. The first LLM (large language model) AI chatbot, Grok by xAI, was a noteworthy success.

However, it’s worth mentioning that the AI Grok encountered significant scrutiny today over spreading misinformation amid the ongoing U.S. elections. On the other hand, Altman’s firm has continued to pioneer the industry with its chatbot, ChatGPT, and other AI services like Sora, among many others.

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Coingape Staff
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