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OpenAI, Anthropic debate on using investor funds to settle lawsuits, FT says

Microsoft-backed (MSFT) OpenAI and Anthropic are debating on using investor funds to settle any potential claims from multibillion-dollar lawsuits, Cristina Criddle and Lee Harris of The Financial Times reports. While both companies have traditional business insurance coverage, insurance professionals have said AI model providers may struggle to secure protection for the full damages they may need to pay in the future. OpenAI is using Aon (AON) for help and has secured up to $300M for AI risks, people familiar with the company’s policy told the Times.

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