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OpenAI vs Elon Musk: Company Alleges Lawsuit is a 'Harassment Tactic'

OpenAI vs Elon Musk: Company Alleges Lawsuit is a 'Harassment Tactic'

In August, Elon Musk filed a lawsuit over alleged preferential treatment of ChatGPT on Apple’s App Store.

Written by Akash Dutta, Edited by Ketan Pratap | Updated: 3 October 2025 14:06 IST

OpenAI vs Elon Musk: Company Alleges Lawsuit is a 'Harassment Tactic'

Photo Credit: Reuters

OpenAI has also created a microsite titled, “The truth about Elon Musk and OpenAI”

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Highlights

OpenAI has filed a motion to dismiss the xAI lawsuit
The company said, “This case is clearly designed to generate publicity”
OpenAI said it does not need anyone’s trade secrets to achieve its goals

More than a month after Elon Musk's xAI filed a lawsuit against OpenAI for anticompetitive behaviour and stealing the company's trade secrets, the San Francisco-based AI firm has finally responded to the allegations publicly. On Thursday, the company published its documents that it presented to the court, answering the allegations as well as seeking a motion to dismiss the case. The AI giant also called Musk's move his “latest harassment tactic dressed up as a lawsuit,” and alleged that the billionaire is bullying OpenAI employees.

OpenAI vs Elon Musk: AI Firm Responds to Allegations

The relationship between OpenAI and Musk have never been pleasant, but now, the war of words on social media have turned into an intense courtroom battle. On Thursday, the official handle of the AI firm posted on X (formerly known as Twitter), responding to the allegations made by xAI. The company has also made two court documents public, first is a "notice of motion to dismiss, or in the alternative, to strike allegations from complaint," and the second is "OpenAI's answers and affirmative defenses."

Alleging that Musk's lawsuit is aimed at slowing down OpenAI for his "personal benefits," the company mentioned in the document that "OpenAI does not need or want anyone's—much less xAI's—
trade secrets to achieve OpenAI's mission." This was in reference to the allegation that the AI firm is hiring xAI employees in an attempt to steal xAI's trade secrets to advance its AI models. The document also claimed that Musk is trying to bully these employees with the lawsuit.

Elon Musk Sues OpenAI Again, This Time for ChatGPT Deal With Apple

OpenAI also claimed that several xAI employees that left the company did so after Grok "reportedly published a number of antisemitic posts, including calling itself MechaHitler." The document highlights that those employees who joined OpenAI exercised their statutory right and were hired in a legal manner.

The allegation of stealing trade secrets from xAI is one of many such lawsuits Musk has filed against OpenAI. The company is already battling a case alongside Apple, where Musk has alleged that ChatGPT gets preferential treament on the App Store, calling it an anticompetitive measure. Musk has also filed a lawsuit against OpenAI's decision to create a for-profit entity, saying that it goes against its charter and the best interest of its investors and users.

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Further reading: OpenAI, Elon Musk, xAI, AI, Artificial Intelligence, Enterprise

Akash Dutta Email Akash Dutta

Akash Dutta is a Chief Sub Editor at Gadgets 360. He is particularly interested in the social impact of technological developments and loves reading about emerging fields such as AI, metaverse, and fediverse. In his free time, he can be seen supporting his favourite football club - Chelsea, watching movies and anime, and sharing passionate opinions on food. More