Elon Musk, the founder of xAI, solicited Meta CEO Mark Zuckerberg to financially support a $97.4 billion acquisition of OpenAI in early 2025, according to recent court filings. These documents surfaced as part of an ongoing legal dispute between Musk and OpenAI.
The legal proceedings are taking place in a federal court located in Northern California. A judge permitted OpenAI to proceed with counterclaims against Musk, who initially co-founded OpenAI as a non-profit organization in 2015 alongside Sam Altman and others. The contention arose when Musk opposed the transformation of OpenAI into a for-profit entity, a move spearheaded by Altman, the company’s CEO.
The relationship between Altman and Musk, once characterized by friendship, deteriorated as OpenAI gained prominence in generative AI, bolstered by substantial funding from Microsoft. Musk subsequently established xAI in 2023, aiming to create a direct competitor to OpenAI. Later, Musk initiated legal action against OpenAI, alleging breach of contract and seeking to prevent the company’s conversion to a for-profit model.
OpenAI’s counterclaims assert that Musk and xAI’s “sham bid” negatively impacted its business. The counterclaims further allege that Musk has engaged in “harassment” through litigation, social media activity, and press statements. In support of its claims, OpenAI has subpoenaed Meta, seeking access to communications between Meta, Zuckerberg, and Musk concerning the proposed acquisition.
OpenAI stated that Musk and xAI approached Zuckerberg with a letter of intent, inquiring “about potential financing arrangements or investments” to form an investor consortium for the takeover. The filing indicates that neither Zuckerberg nor Meta formally signed the letter of intent. A Meta spokesperson declined to comment on the matter, and Marc Toberoff, Musk’s legal representative, did not respond to requests for comment.
The court filing also suggests that Meta has been “spending heavily to develop its own AI capabilities” and has been “offering pay packages of $100 million or more to leading AI researchers and attempting to poach OpenAI employees.” Meta has contested OpenAI’s document requests, deeming them “overly burdensome.” Meta has proposed that OpenAI should instead seek relevant communications directly from Musk and xAI.
