OpenAI is suing Elon Musk for unfair competition and interfering with its business relationships with investors and customers, escalating a legal battle between the ChatGPT maker and the billionaire who helped bankroll the artificial intelligence startup a decade ago.
The allegations against Musk were filed Wednesday in a federal court in California as a counterclaim to the Tesla CEO's lawsuit against OpenAI, which is heading to a jury trial next year.
Musk, an early OpenAI investor who now runs his own AI firm, xAI, along with Tesla, SpaceX, social media platform X and President Donald Trump's Department of Government Efficiency, began a legal offensive against OpenAI and its CEO Sam Altman more than a year ago.
He first sued for breach of contract over what he said was the betrayal of its founding aims as a nonprofit research laboratory, and later expanded his claims.
A federal judge in March denied Musk’s request for a court order blocking OpenAI from converting itself to a for-profit company but said she could expedite a trial to consider Musk’s claims. She offered to hold a trial later this year, but it has been pushed back to March 2026.
In this week's counterclaim, OpenAI accuses Musk of making a “sham bid” in February to buy a controlling stake in the nonprofit.
Musk and a group of investors offered $97.4 billion for OpenAI's assets, a number that OpenAI said Musk pulled from the character 974 Praf in the science fiction novel “Look to Windward” by Scottish writer Iain Banks. Musk has also named some of his SpaceX machinery after ships in the book.
OpenAI said it “recognized the bid as a feint” but has repeatedly had to divert resources and “suffered harm as a result of Musk’s unlawful campaign of harassment, interference, and misinformation.”
Musk attorney Marc Toberoff responded in an email late Wednesday and said that if OpenAI's board of directors had “genuinely considered the bid, as they were obligated to do, they would have seen how serious it was.”
"It’s telling that having to pay fair market value for OpenAI’s assets allegedly ‘interferes’ with their business plans,” Toberoff wrote.
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FILE - The OpenAI logo appears on a mobile phone in front of a screen showing part of the company website in this photo taken on Nov. 21, 2023 in New York. (AP Photo/Peter Morgan, File)
Exxon Mobil’s first quarter profit slumped to the lowest level in years, stung by weaker crude prices and higher costs.
The oil and gas giant earned $7.71 billion, or $1.76 per share, for the three months ended March 31. It earned $8.22 billion, or $2.06 per share, in the year-ago period.
The results topped Wall Street expectations, but Exxon does not adjust its reported results based on one-time events such as asset sales. Analysts polled by Zacks Investment Research expected earnings of $1.74 per share.
Revenue totaled $83.13 billion, which fell short of the $84.15 billion that analysts were calling for.
This week, a barrel of U.S. benchmark crude fell below $60, a level at which many producers can no longer turn a profit.
“In this uncertain market, our shareholders can be confident in knowing that we’re built for this,” Chairman and CEO Darren Woods said in a statement Friday. “The work we’ve done to transform our company over the past eight years positions us to excel in any environment.”
Crude oil is down nearly 18% for the year to date, according to FactSet.
Oil prices plummeted last month, at one point sinking to a four-year low in anticipation of slowing economic growth due to a burgeoning trade war.
Trump announced far-reaching tariffs on nearly all U.S. trading partners April 2 and then reversed himself a few days later after a market meltdown, suspending the import taxes for 90 days. Amid the uncertainty for both U.S. consumers and businesses, the Commerce Department said Wednesday that the U.S. economy shrank 0.3% from January through March, the first drop in three years.
Rapidly falling oil prices signal pessimism about economic growth and can be a harbinger of a recession as manufacturers cut production, businesses cut travel costs and families rethink vacation plans.
And there appears to be little appetite for turn off the spigots by some of the world's largest producers.
In December eight members of the OPEC+ alliance of oil exporting countries signaled they would not cut production as they compete with production from non-allied oil producing countries.
The OPEC+ members decided at the time to postpone production increases that had been scheduled to take effect Jan. 1. The plan had been to start gradually restoring 2.2 million barrels per day over the course of 2025.
That process was pushed back to April 1 and production increases will gradually take place over 18 months until October 2026.
Shares of Exxon Mobil rose slightly before the market open.
FILE - Oil pumps work in the desert oil fields of Sakhir, Bahrain, Sept. 30, 2015. (AP Photo/Hasan Jamali, File)
