OpenAI warns investors Elon Musk may make “outlandish claims” as lawsuit heads to trial

OpenAI has written to its investors and banking partners warning that Elon Musk is likely to make exaggerated and attention-grabbing claims as his lawsuit against the artificial intelligence company moves towards trial in April.

The letter, reviewed by CNBC, represents an unusually direct effort by OpenAI to prepare financial backers for what is expected to be a closely watched courtroom battle with one of its most prominent co-founders. The company described the upcoming trial as a significant escalation in Musk’s long-running dispute with the organisation, while emphasising that it remains confident in its legal case.

OpenAI has raised billions of dollars in recent years, with its valuation reportedly climbing to around $500 billion. Against that backdrop, the company appears keen to reassure investors that the legal fight will not pose material risks to its operations or future plans.

Musk co-founded OpenAI in 2015 as a nonprofit research initiative alongside Sam Altman and other early executives. He stepped down from the board in 2018, well before the organisation began transitioning toward a more commercial structure and entered into its multibillion-dollar partnership with Microsoft.

In 2024, Musk filed a lawsuit accusing OpenAI of misleading him and betraying its original mission as it evolved into a for-profit enterprise. The complaint alleges that the company created a complex network of commercial affiliates in ways that violated its founding principles and the expectations of early supporters.

Musk has also claimed he is entitled to a share of the value generated from intellectual property developed with the help of his early contributions, a demand that OpenAI has firmly rejected.

In its communication to investors, OpenAI said it believes the lawsuit has little merit and that it has strong defences. The company added that, based on the record so far, it views the case as being worth no more than the $38 million Musk originally donated, while acknowledging that legal outcomes can never be guaranteed.

Earlier this month, US District Judge Yvonne Gonzalez Rogers ruled that the case will proceed to trial in the Northern District of California, where it was first filed in August 2024.

The letter also cautioned that Musk is likely to make public statements about the company that are not grounded in fact, describing such behaviour as part of his typical litigation strategy. OpenAI said its focus would be on ensuring the jury evaluates the claims objectively.