OpenAI tells investors to brace for 'deliberately outlandish' claims from Musk ahead of trial

In a recent communication to its investors and banking partners, OpenAI cautioned that Elon Musk is likely to make "deliberately outlandish, attention-grabbing claims" as his lawsuit against the AI organization approaches trial in April. This legal confrontation represents a significant escalation in Musk's long-standing conflict with OpenAI, prompting the company to proactively address potential investor concerns. Having secured billions in funding from venture capitalists, OpenAI's valuation has surged to an impressive $500 billion. Musk was one of the co-founders of OpenAI in 2015, alongside other key figures, including CEO Sam Altman. However, in 2024, he initiated legal action against the company, alleging that he had been "assiduously manipulated" and subjected to deception when OpenAI considered shifting to a for-profit model and formed a "complex network of for-profit affiliates," which includes a lucrative partnership with Microsoft. Although Musk stepped down from OpenAI's board in 2018, he asserts that he is entitled to a share of the intellectual property he helped develop, which he claims could be worth billions. In the letter reviewed by CNBC, OpenAI expressed confidence in its legal defenses, stating, "We believe this case is worth no more than the $38 million that Elon donated - though that is not a guarantee." OpenAI refrained from providing further comments on the letter. Earlier this month, U.S. District Judge Yvonne Gonzalez Rogers confirmed that the case will go to trial, following its filing in August 2024 in the Northern District of California. The company anticipates that Musk will make statements about OpenAI that are "not grounded in reality" and indicative of the harassment tactics he has used in the past. "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 asserted.