Anthropic, Open AI, Google, and SpaceX are getting sued… Do you know how lawsuits and litigation work? If you do then you know this has the potential to be a big, like really big, deal. From the beginning, it looks like a class action style lawsuit that allows other plaintiffs to jump in, that is, shareholders of the companies being sued. I’ll explain my point of view. I’ve been in my fair share of business litigation over my career. At one point (for an employer) I led a lawsuit against the federal government on the failure to pay for construction and engineering. The government claimed sovereign immunity and yet we won and were able to recover millions in unpaid cost. So yeah, I know a business lawsuit, even crazy ones. First the plaintiff must have standing. That means that he, she, and future people must be equity holders. The first plaintiffs likely own stock in all 4 companies. SpaceX and Google being owned is easy, but Anthropic and Open AI are still private, so getting their stock is a bit harder. First up: Served ✅ Second: Attorneys meet, plaintiff attorneys are going to go hard in the paint. Defendants will threaten to dismiss. ➡️ Prediction - not dismissed, there are grounds from recent comments in the public record by Anthropic and Open AI, in violation of the anti -collusion law. Third: Discovery. The discovery demands will flood to the AI companies’ legal team. Including -phone calls, texts, images, signal, WhatsApp -messages, emails, slack, DM’s, chats -paper notes, print outs, etc. There will be massive effort to gather and package this. Defendants attorneys must dilligence to ensure information appears legitimate. ➡️experience - this will go round and round with new information request, scope discussion (e.g confidential and attorney client privilege) Fourth: Depositions will commence with employees from the companies going into a room with recorded microphones and attorneys on each side. Testimony is under oath. There may be some unrecorded interviews. Watch out for cross examination and perjury traps. ➡️ experience - the details of the interview and prep for it require focus and effort. You can’t coach employees what to say. Fifth: Out of court settlement. No explanation needed. Compromises and compensation will be made. This is the most likely outcome. If not, Sixth: Jury trial. You only need 9/12. The jury will go 9/12 or more. The plaintiffs will get a favorable ruling from the judge and compensation will be made. Thoughts: Fraud - going too far down the process risks higher and higher chance of follow on lawsuits for fraud. This is debt holders, suppliers, and contract holders. Endless rabbit holes. More cash bleed and many cancelled contracts. Perjury - the risk is so high here Seal the suit and settle early - that’s exactly what the AI companies should do Anthropic S-1 - this has to go on it. Terrible timing Google and ScaceX - will get dismissed from suit. Terrafab, compute in space, TPU chips. They are definitely not pumping the breaks. They get out of it Funding - somebody is funding this lawsuit. Ask yourself who benefits and what the expected benefits are. Many, many angles here. Federal Prosecution - another reason this must get quashed early is to avoid disclosure to law enforcement. SEC, FBI, IRS, FinCen, DOW, and other agencies have a stake in the biggest AI labs. Winning - Perplexity, open source, Grok, Gemeni, and AI integrators / verticals. Hope you had fun reading this. Litigation is a crazy thing. -your neighborhood engineer