Things between OpenAI, aka Sam Altman, and Elon Musk just got heated. While much of the focus was on Anthropic’s Claude coming out with seemingly perfect SaaS models, a gritty fight is unfolding behind closed doors, including chatter about “ephemeral” messaging apps like Signal and XChat, whose sole purpose is to make conversations disappear forever.
Musk is an avid supporter of these disappearing messaging apps, claiming they are the pillar of digital privacy. But OpenAI is alleging that this “delete” culture is intended to prevent potentially sensitive information from reaching the court.
This month, OpenAI filed a motion to compel in the Northern District of California.
If you thought your precious OpenAI chats were safe from being subpoenaed, the lawsuit may set a precedent on how much “privacy” a tech CEO is allowed when they sue a competitor.
OpenAI demands sanctions against xAI
The case centers on several explosive allegations of “systematic and intentional” destruction of sensitive information relevant to the case. OpenAI claims that Elon Musk and xAI did not produce internal documents supporting the merits of their antitrust claims.
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Instead of a paper trail like email, OpenAI argues that xAI senior executives were instructed to communicate exclusively via Signal, with messages set to auto-delete in 1 week or less.
In a sworn declaration, a former xAI Chief Financial Officer stated that the “ephemeral” messaging was the “default way to communicate” during his time of work.
The former CFO said he was instructed to use Signal for business matters after being hired by Musk’s close associate.
OpenAI is requesting that the judge consider these disappearing messages as “spoliation” of evidence, a legal term for the destruction of evidence needed for a fair trial.
If the request goes through, the jury could assume that deleted messages contain information that would have hurt Musk’s case, a practice called “adverse inference.”
A history of discovery disputesand “disappearing” messages
In the filings, Musk is described as a “serial litigant,” with multiple courts having previously scolded him for failing to maintain evidence.
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For instance, a Delaware court concluded that Musk’s custodians may permit Signal’s automatic deletion during Twitter’s acquisition.
More recently, a California federal judge noted that something had “likely gone significantly wrong” with document production in a separate case.
OpenAI is using these “yellow flags” to paint a picture of a “recidivist spoliator.”
OpenAI speaks out: “The Truth Elon Left Out.”
According to OpenAI, Musk “cherry-picked” journal entries to control the narrative, whereas the full context as Musk’s leadership team was struggling to keep up with “intense and deeply personal” demands.
Musk’s recent filings:
- B-Corp Origins: OpenAI provided 2017 notes showing Musk exploring a shift from a B-Corp to a C-Corp.
- Mars vs. Earth: OpenAI claimed Musk’s control tendencies are linked to his efforts to raise $80 billion to fund his dreams of a self-sustaining city on Mars.
U.S. District Judge Yvonne Gonzalez Rogers rejected OpenAI and Microsoft’s bid for a case dismissal.
The jury trial is set for late April 2026 in Oakland, California, and the court refused to set aside the fraud allegations, noting that the specific journal entries (as noted above) need to be seen by a jury.
After the SpaceX and xAI acquisition valued at $1.25 trillion, Musk held a total reorganization meeting.
- The Exodus: xAI’s six of 12 co-founders resigned, including Jimmy Ba and Tony Wu, and Musk claimed the departures were necessary for a company moving at “interstellar speed,” but legal experts observe that the timing also aligns with the “Signal” battle.
- Project “Macrohard”: In response to Microsoft, Musk announced a new xAI initiative called “Macrohard,” whose purpose is to build sophisticated coding tools to replace traditional software entities…
With a trial set, OpenAI CEO Sam Altman called the upcoming court opportunity to put Musk under oath, “Christmas in April.”
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