OpenAI has cautioned that Elon Musk is likely to make wild, attention-grabbing claims in his upcoming trial against the AI company, now valued at $500 billion.
The trial, scheduled for April 2026, is part of Musk’s broader lawsuit against the company he helped co-found. OpenAI informed its investors about this warning, aiming to mitigate their concerns about what Musk might articulate in court and to address some of those existing concerns.
Musk initiated OpenAI in 2015 alongside Sam Altman and other researchers. At its inception, the organization operated as a nonprofit, prioritizing research over revenue generation.
However, the technology firm has since transformed into a for-profit entity, including a significant for-profit collaboration with Microsoft. This evolution forms the central point of contention in Musk’s lawsuit.
Musk Files Lawsuit Against OpenAI
OpenAI alerted investors to its warning in an effort to mitigate concerns regarding Musk's potential courtroom statements. The trial represents a public escalation of a long-standing feud, and the company's communication is intended to reassure investors. OpenAI has secured billions in venture capital funding, propelling its valuation to $500 billion.
Musk initiated legal proceedings against OpenAI in 2024, asserting that he was "assiduously manipulated" and "deceived." His allegations stem from the AI company's exploration of transitioning to a for-profit model and the establishment of an "opaque web of for-profit OpenAI affiliates," notably including its multi-billion dollar partnership with Microsoft.
Although Musk departed the company's board in 2018, he contends that he is entitled to "the value of all intellectual property developed" from his contributions, a sum that could potentially reach billions of dollars, according to the legal complaint.
Conversely, OpenAI strongly refutes these claims. In a letter addressed to investors, the company characterized the lawsuit as "baseless" and stated that, based on the available evidence, the case's value is unlikely to exceed the $38 million Musk initially donated to help establish OpenAI.
The court has now ruled that Musk's case will proceed to trial in the US District Court for the Northern District of California. This decision means a jury will hear arguments from both sides to determine the merit of Musk's allegations.
OpenAI Defends Itself Against Musk’s Claims
OpenAI has stated that Musk might present statements not grounded in reality to enhance his public profile. The company believes these are tactics Musk has employed previously and asserts that its legal team is prepared to ensure a jury understands the factual basis of the case.
“Elon’s lawsuit remains baseless and without merit, and our team is focused on ensuring the jury sees these claims for what they are,” OpenAI stated.
The company highlighted its strong legal position and expressed confidence in achieving a favorable outcome, as conveyed in its investor letter. OpenAI is also emphasizing that regardless of any substantial claims Elon Musk might make, the actual value of the case is significantly less than what he might seek in court.
This legal dispute underscores the potential for disagreements between former collaborators over ideas, financial matters, or technological advancements. Musk and OpenAI were once partners, working together to develop one of the world's most influential AI companies, only to find themselves on opposing sides of a major lawsuit.
This situation is part of the ongoing narrative of OpenAI. The company has experienced rapid growth and is now valued in the hundreds of billions of dollars.