OpenAI is trying to turn Elon Musk’s alleged pretrial settlement outreach into evidence against him in his $150 billion case against the ChatGPT maker.
In a new filing, the firm said Musk reached out to OpenAI president Greg Brockman shortly prior to the federal trial to check if it is open to settle the case. Brockman reportedly responded, according to the filing, for both sides should walk away from their claims.
“By the end of this week, you and Sam will be the most hated men in America. If you insist, so it will be,” Musk allegedly replied.
The alleged message matters because Musk’s lawsuit is already built around a high-stakes claim: that OpenAI’s leaders used a nonprofit mission to raise support, talent, and money, then shifted the organization toward a for-profit structure that Musk says betrayed its original purpose. OpenAI denies the allegations and has argued that Musk knew the company needed a capital-raising structure to compete in frontier AI.
Musk is suing OpenAI, Altman, Brockman, and Microsoft, alleging breach of charitable trust and unjust enrichment. He is seeking $150 billion in damages from OpenAI and Microsoft, with proceeds directed to OpenAI’s charitable arm, and wants OpenAI returned to nonprofit control. He also wants Altman and Brockman removed as officers, and Altman removed from OpenAI’s board.
The filing followed Musk’s Thursday testimony that he read only the headline of a 2017 term sheet tied to OpenAI’s move toward a for-profit structure. That point could become important for OpenAI’s defense because Musk must show he relied on specific commitments, not just the broad stated purpose of the organization.
The Associated Press reported that Musk contributed about $38 million to OpenAI between 2015 and 2017, while claiming he became disillusioned by late 2022 because he believed Altman aimed to “steal the charity.” AP also reported that OpenAI’s lawyers argue there was no binding commitment to remain nonprofit and that Musk’s lawsuit benefits his competing AI company, xAI.
Microsoft’s role remains central because Musk alleges the company benefited from and helped enable OpenAI’s shift away from its original charitable mission. Most recently, Microsoft is loosening its grip on OpenAI in a revised partnership that ends Microsoft’s revenue-share payments to the ChatGPT maker, removes exclusivity from the relationship, and gives OpenAI more freedom to sell its technology across rival cloud platforms.
Information for this briefing was found via The Globe And Mail and the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
