OpenAI bolsters legal team amid copyright lawsuits as IPO looms

OpenAI has widened the circle of law firms advising it as the ChatGPT maker confronts copyright litigation, trade-secret claims and preparations for a possible stock market debut. Reuters reported on May 22 that the company, most recently valued at $852 billion, now works with more than a dozen large U.S. firms across litigation and deals. (enterpriseai.economictimes.indiatimes.com) The legal buildup comes days after a California jury rejected Elon Musk’s claims against OpenAI and Chief Executive Sam Altman, removing one obstacle that had hung over the company’s corporate structure and IPO plans. (enterpriseai.economictimes.indiatimes.com) Bloomberg Law reported in March that OpenAI had selected Cooley and Wachtell, Lipton, Rosen & Katz to prepare for an IPO that could come as soon as this year. ### Which firms are now working for OpenAI? Reuters said Wachtell and Morrison & Foerster helped OpenAI defeat Musk’s lawsuit on Monday and that Wachtell has also represented the company in major transactions involving Microsoft, Nvidia and other investors. Reuters also said Latham & Watkins handled several deals for OpenAI, including a $4 billion revolving credit line in 2024. (enterpriseai.economictimes.indiatimes.com) Morrison Foerster, Keker, Van Nest & Peters, Munger, Tolles & Olson and Wilson Sonsini Goodrich & Rosati are also representing OpenAI in different matters, according to Reuters. Bloomberg Law reported in October 2025 that General Counsel Che Chang oversaw a legal team that had grown to roughly 90 lawyers. (enterpriseai.economictimes.indiatimes.com) ### What cases are driving the legal buildup? Copyright litigation remains one of the biggest pressures on OpenAI’s legal operation. Reuters said authors, comedians and news agencies have sued OpenAI, alleging it used their material without permission to train AI systems, while the company argues the practice is protected by fair use. (enterpriseai.economictimes.indiatimes.com) The New York Times sued OpenAI and Microsoft in December 2023, accusing them of unlawful copying and use of Times journalism. A separate Authors Guild case was filed in September 2023 in federal court in Manhattan and later consolidated with related author actions for pretrial purposes. Reuters also said Musk’s xAI sued OpenAI last year, alleging trade-secret theft, and that OpenAI hired Munger, Tolles & Olson to defend that case. (enterpriseai.economictimes.indiatimes.com) In another matter, Reuters said Wilson Sonsini is representing OpenAI in a lawsuit by Nippon Life Insurance Company of America, which alleges ChatGPT practiced law without a U.S. license in helping a former disability claimant file meritless court papers. ### Why does an IPO make the legal roster more important? A public filing would force OpenAI to spell out litigation, governance and business risks in securities disclosures. Bloomberg Law reported that OpenAI picked Cooley and Wachtell for IPO preparation, and Reuters said the recent Musk verdict cleared a potential hurdle to that process. (courthousenews.com) Bloomberg Law said in March that an OpenAI listing, at a valuation then reported at $730 billion, could rank among the biggest IPOs of all time. Reuters on May 22 cited a more recent valuation of $852 billion. ### What should customers and investors watch next? Che Chang told Bloomberg Law in October that OpenAI was operating in an “interesting middle ground” — smaller than Big Tech rivals but facing legal threats on the scale of a Silicon Valley heavyweight. (enterpriseai.economictimes.indiatimes.com) That posture matters because the company is still defending fair-use claims while trying to move toward public markets. The next concrete step is any IPO filing by OpenAI, which Reuters and Bloomberg Law-linked reports say Wachtell and Cooley are helping prepare. (news.bloomberglaw.com) Court schedules in the copyright cases and the Nippon Life dispute will also shape what risks OpenAI may need to describe to future investors. (enterpriseai.economictimes.indiatimes.com) (news.bloomberglaw.com)