Elon Musk’s Secretive Gambit: Is OpenAI on the Verge of Collapse?

The high-stakes legal battle between OpenAI and Elon Musk has escalated further, as lawyers representing OpenAI and CEO Sam Altman submitted a request seeking a court order to halt Musk’s alleged “unlawful and unfair” actions aimed at disrupting the company. In Wednesday’s court filing, OpenAI’s attorneys emphasized the significant harm already inflicted by Musk’s activities and argued that ongoing interference could jeopardize OpenAI’s mission, stakeholder relationships, and even public interest.

“Musk’s continued attacks on OpenAI, culminating most recently in the fake takeover bid designed specifically to disrupt OpenAI’s future, must cease,” the filing stated. It further tasked the court with holding Musk accountable for damages caused to the company.

Elon Musk had initially sued OpenAI, charging that the organization was abandoning its original nonprofit mission and proceeding improperly with a conversion toward a profit-driven structure. OpenAI, established as a nonprofit entity in 2015, officially transitioned to a “capped-profit” model in 2019 and now intends to shift again into a public-benefit corporation. Musk previously attempted to stop this transition through a preliminary injunction request; however, in March, a federal judge denied this attempt, enabling the matter instead to advance toward jury trial in the spring of 2026.

Once an influential backer and co-founder, Musk has evolved into one of OpenAI’s fiercest critics. With OpenAI under pressure to finalize its move toward a for-profit structure by the end of 2025 or otherwise risk surrendering portions of recently acquired funding, the stakes involved are exceptionally high.

Meanwhile, opposition to OpenAI’s planned conversion has expanded beyond Musk. Various nonprofit and labor interests, including the California Teamsters, recently petitioned California Attorney General Rob Bonta, urging him to block OpenAI’s transition on grounds that the company has allegedly mismanaged its charitable assets and strayed from its intended mission of ensuring the responsible development of artificial intelligence.

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