OpenAI has sent a letter to investors and banking partners cautioning that Elon Musk is likely to make what it describes as deliberately outlandish and attention grabbing claims as his lawsuit against the AI lab moves towards trial in April.
The letter, viewed by CNBC, marks a rare and unusually direct attempt by OpenAI to prepare its financial backers for a public courtroom battle with one of its most famous co founders. The company said the trial would represent a significant escalation in Musk’s long running dispute with OpenAI, but stressed that it remains confident in its legal position.
OpenAI has raised billions of dollars from venture capital firms in recent years, with its valuation reportedly climbing to $500 billion. Against that backdrop, the company appears keen to limit any investor anxiety triggered by the prospect of a high profile legal fight with the world’s richest man.
Musk co founded OpenAI in 2015 as a nonprofit research organisation, alongside several researchers and executives including current chief executive Sam Altman. He left the board in 2018, years before OpenAI began transitioning towards a more commercial structure and entered into its multibillion dollar partnership with Microsoft.
In 2024, Musk filed a lawsuit accusing OpenAI of deceiving him and manipulating his support as the organisation explored becoming a for profit entity. The complaint alleges that OpenAI created an opaque network of for profit affiliates, betraying its original mission and the expectations of its early backers.
Musk has also argued that he is entitled to the value of all intellectual property developed from his contributions to OpenAI, a claim that could potentially run into billions of dollars. OpenAI has firmly rejected that argument.
In its letter, the company said it has strong defences and feels confident about its chances of winning the case. It added that, based on the record so far, it believes the lawsuit is worth no more than the $38 million Musk donated to OpenAI, while acknowledging there is no absolute guarantee.
Earlier this month, US District Judge Yvonne Gonzalez Rogers ruled that the case will proceed to trial. It was originally filed in August 2024 in the Northern District of California.
OpenAI also warned investors that Musk is likely to make public statements about the company that are not grounded in reality, describing them as part of what it called his typical harassment tactics. The company said its focus is on ensuring the jury understands the claims for what they are.
OpenAI declined to comment publicly on the letter.
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