OpenAI warns investors of Musk's 'outlandish' claims before trial

OpenAI has sent a message to its investors and banking partners, cautioning them that they anticipate Elon Musk will make "intentionally sensational and eye-catching statements" as his lawsuit against the AI company is set for trial in April.

This trial is expected to publicly escalate Musk's ongoing dispute with OpenAI, and the letter aims to address and ease any concerns from investors. 

OpenAI has secured billions in funding from venture capitalists, with its valuation soaring to $500 billion.

Musk helped establish OpenAI as a nonprofit research organisation in 2015 with several researchers and executives, including the company's CEO, Sam Altman.

In 2024, he lodged a lawsuit against OpenAI, claiming he was "carefully manipulated" and "misled" after the company considered transitioning to a for-profit model and created a "complex network of for-profit OpenAI affiliates," including its substantial collaboration with Microsoft.

Musk left OpenAI's board in 2018, contending that he is entitled to "the value of the intellectual assets developed" from his involvement, possibly equating to billions of dollars, according to the complaint.

"We have strong defenses and feel confident about our chances of winning the case," OpenAI stated in the letter. "Regardless, based on the record so far, we believe this case is worth no more than the $38M that Elon donated - though that is not a guarantee."

Earlier in the month, US District Judge Yvonne Gonzalez Rogers decided the case will advance to trial. 

The lawsuit was initiated in August 2024 in the US District Court in the Northern District of California.

OpenAI predicted that Musk would make remarks about the AI organisation that are not "based in fact" and align with "the harassment strategies he's used in the past," according to the letter.

"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.