TLDR: A federal judge has rejected Elon Musk’s attempt to dismiss harassment claims filed by OpenAI, clearing the path for a jury trial in early 2026. OpenAI alleges Musk engaged in a sustained campaign to destabilize the company, including ‘misleading’ media attacks and a ‘sham bid’ to acquire it.
A federal judge has ruled against Elon Musk’s motion to dismiss harassment claims brought by artificial intelligence powerhouse OpenAI, ensuring the high-profile legal dispute will advance to a jury trial. U.S. District Judge Yvonne Gonzalez Rogers, presiding in Oakland, issued an order on August 13, 2025, allowing OpenAI’s counterclaims against Musk to proceed.
OpenAI accuses Musk of orchestrating a ‘years-long harassment campaign’ designed to undermine the company’s stability and fundraising capabilities. Central to these allegations are claims that Musk engaged in ‘misleading’ media attacks and disseminated a ‘sham bid’ in February to purchase OpenAI for $97.3 million. These actions, OpenAI contends, were aimed at destabilizing the company’s operations and public perception.
Conversely, Musk had initiated his own lawsuit challenging OpenAI’s transition from a nonprofit to a for-profit entity. However, Judge Rogers’ recent order also saw the dismissal of certain parts of Musk’s original lawsuit, including two claims for civil racketeering.
This ruling intensifies the ongoing feud between Elon Musk and OpenAI, a company he co-founded before his departure. The dispute has been characterized by mutual accusations of dishonesty and manipulation within the fiercely competitive artificial intelligence sector. The court has set a jury trial for March 2026, or spring 2026, in Oakland, where the merits of OpenAI’s harassment claims will be heard.
Also Read:
- Elon Musk’s xAI Threatens Legal Action Against Apple Over Alleged App Store Antitrust Violations Favoring OpenAI
- Altman Accuses Musk of X Algorithm Manipulation Amid Apple App Store Feud
The legal battle underscores the escalating tensions and high stakes in the rapidly evolving AI industry, with prominent figures like Musk and leading AI entities like OpenAI clashing over corporate governance, strategic direction, and market influence. Musk has also previously accused tech giants like Apple of manipulating their App Store to favor OpenAI, further highlighting the broader competitive landscape.
