OpenAI warns investors: Musk likely to make wild claims in $500B lawsuit

Tensions between Elon Musk and OpenAI are escalating. The AI company has warned investors that the Tesla CEO may present “exaggerated and attention-seeking” statements during the April 2026 court trial. The case stems from Musk’s ongoing legal battle against the firm he co-founded in 2015 — now valued at over $500 billion.

A battle over billions and principles Musk claims he was misled when OpenAI shifted from its nonprofit roots to a for-profit model, forming a multibillion-dollar alliance with Microsoft. He argues he deserves a share of all intellectual property created since the company’s early days — potentially worth billions. OpenAI strongly disagrees. In a recent letter to investors, it described the lawsuit as “baseless,” adding that any legitimate claim Musk might have would be limited to the $38 million he donated in the company’s early stages.

Trial moves forward The court has ruled that the case will proceed to a jury trial, giving both sides a chance to present their arguments. OpenAI expects Musk to lean on media-driven tactics, but says its legal team is fully prepared to set the record straight. “Elon’s lawsuit remains unfounded. We’re confident the jury will see through these claims,” an OpenAI spokesperson said.

From collaborators to rivals The trial represents more than just a legal dispute — it’s a public breakdown between early collaborators now divided over power, principles, and profit. Once united in their vision of safe AI for humanity, Musk and OpenAI now find themselves on opposite sides of a battle that could reshape the rules around artificial intelligence. Today, the company is valued at over half a trillion dollars and leads the AI space. But the path forward will likely include more challenges — both legal and ethical.

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