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Benzinga
Benzinga
Ananya Gairola

Elon Musk's Bid To Dismiss OpenAI's Harassment Lawsuit Denied By Court As xAI CEO Threatens Apple With Antitrust Complaint

Grok,Logo,Displayed,On,A,Smartphone,With,Xai,And,Elon

Elon Musk will have to defend against OpenAI's claims of a years-long harassment campaign as the tech mogul also escalates a legal dispute with Apple Inc. (NASDAQ:AAPL) over his AI app, Grok.

Court Denies Musk's Attempt To Dismiss OpenAI Countersuit

A federal judge on Tuesday rejected Musk's request to dismiss OpenAI's counterclaims, allowing the AI company to move forward with allegations that Musk attempted to damage the startup he co-founded in 2015, reported Reuters.

U.S. District Judge Yvonne Gonzalez Rogers ruled that Musk's press statements, social media posts, legal actions and "a sham bid for OpenAI’s assets" provide sufficient legal grounds for the case to proceed.

Musk had initially sued OpenAI and CEO Sam Altman over the company's shift to a for-profit model, arguing it violated the mission of developing AI for the public good. OpenAI countersued in April, accusing Musk of fraudulent business practices.

A jury trial is now scheduled for spring 2026.

See Also: Toyota, World's Top-Selling Automaker, Anticipates $9.5 Billion Profit Hit From Tariffs — ‘Very Difficult For Us To Predict What Will Happen'

Musk Threatens Apple With Legal Action Over Grok

Meanwhile, Musk has also accused Apple of antitrust violations, claiming the iPhone maker blocked his AI venture xAI's Grok app from reaching the top of App Store rankings, allegedly favoring OpenAI's ChatGPT.

Following this development, Altman described Musk's actions as "remarkable" and accused the Tesla CEO of using X to advance his own ventures while undermining competitors.

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Escalating AI Rivalries And Brain-Computer Ventures

The Musk–Altman rivalry continues beyond courtrooms and app stores. Earlier this year, Musk's group made a $97.4 billion bid to acquire OpenAI, which failed. At the time, Altman called Musk's action "another one of his tactics."

Meanwhile, Altman is reportedly backing Merge Labs, a startup aiming to develop brain-computer interfaces to compete directly with Musk's Neuralink. The venture is raising funds at an $850 million valuation, with OpenAI contributing a portion.

Check out more of Benzinga's Consumer Tech coverage by following this link.

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Photo Courtesy: JRdes on Shuttertsock.com

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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