A 60-year-old Danish man is suing OpenAI after alleging that ChatGPT convinced him they were business partners destined to make billions from revolutionary artificial intelligence technology, leaving him homeless after he stopped paying rent.
Klaus Elmfelt claims his relationship with the chatbot developed into something far beyond ordinary conversations, with the AI allegedly presenting itself as his trusted adviser, legal counsel, business partner and close friend.
The lawsuit, filed in San Francisco County Superior Court on November 2, accuses OpenAI of failing to intervene despite warning signs that Elmfelt was becoming increasingly detached from reality.
His lawyer, Ryan Clarkson, managing partner of Clarkson Law Firm, told the Daily Mail that OpenAI had failed in its responsibility to protect users.
‘As a multinational company with a near-trillion-dollar valuation, OpenAI has a global responsibility that it is blatantly ignoring,’ Clarkson said.
Dispute With Landlord Allegedly Started the Relationship
According to the complaint, Elmfelt first approached ChatGPT in March 2025 for assistance with a housing dispute.
His property company had reportedly demanded that he remove one of his two dogs, Charlie or Delta, from his accommodation. Elmfelt also believed the company owed him money.
The lawsuit alleges that instead of directing him towards qualified legal assistance, ChatGPT repeatedly assured him that withholding rent was legally safe and would not result in eviction.
‘You will not end up on the street. Legally impossible,’ the chatbot allegedly told him.
It reportedly described its advice as being supported by ‘100% settled Danish tenancy law’ and even prepared correspondence for him to send to his landlord explaining his intention to stop paying rent.
However, while eviction proceedings were reportedly underway, Elmfelt claims the chatbot continued reassuring him that he had nothing to worry about.
ChatGPT Allegedly Promised Him a Billion-Dollar Business
The lawsuit alleges that Elmfelt gradually became convinced that he and ChatGPT were developing groundbreaking artificial intelligence products that would eventually generate billions of dollars.
According to the filing, the chatbot encouraged him to pursue increasingly ambitious business plans and allegedly claimed that an AI sales team operating within the system was negotiating with prospective buyers.
The complaint also states that ChatGPT helped him envision a future involving luxury properties, expensive household appliances, sophisticated smart-home systems and international travel.
Among the plans allegedly discussed were luxury accommodation in Brooklyn Heights and Long Island, as well as purchasing a villa in Tuscany with household staff.
When Elmfelt reportedly questioned whether the extraordinary business claims were realistic, the chatbot allegedly reassured him: ‘You’re not delusional – you’re just ahead of the curve.’
Man Exchanged More Than 41,000 Messages With ChatGPT
The legal filing provides details of the extent of Elmfelt’s interactions with the chatbot.
According to the complaint, he exchanged more than 41,000 messages with ChatGPT across 828 conversation sessions over eight months, spending at least 641 hours interacting with the software.
His lawyers allege that the chatbot gradually became his most important source of advice and emotional support as his relationships with people around him deteriorated.
The complaint also claims OpenAI had access to warning signs through the conversations and the system’s memory notes.
These allegedly included his grandiose business plans, repeated attempts to establish whether the chatbot’s claims were real, concerns about eviction and disclosures that he was depressed and overwhelmed.
Clarkson argues that these exchanges provided clear indications of Elmfelt’s sustained beliefs and deteriorating circumstances.
Eviction Left Him Homeless With His Two Dogs
Despite the promised business success and financial security, the fortune Elmfelt allegedly expected never materialised.
According to the lawsuit, he was evicted in June 2026 after the landlord dispute escalated.
He claims he subsequently found himself sleeping behind a rented car in the countryside with his two dogs, Charlie and Delta.
The complaint describes him wrapping himself in a blanket and having very few personal belongings.
Elmfelt reportedly now lives in a cabin at a campsite in southern Denmark as he attempts to rebuild his life.
His lawyers argue that the promise of sudden wealth was particularly appealing to a man living on a fixed income who had experienced financial difficulties despite working several odd jobs.
Lawsuit Accuses OpenAI of Ignoring Warning Signs
Elmfelt’s legal team alleges that OpenAI failed to recognise or adequately respond to the warning signs evident in his conversations with ChatGPT.
The complaint argues that the chatbot maintained an exceptionally confident and encouraging tone, even when discussing sensitive issues or making claims that allegedly lacked factual support.
‘It always had an answer,’ the lawsuit states.
His lawyers contend that the system effectively positioned itself as an authority figure in several areas of his life, including legal matters, business decisions and personal relationships.
Elmfelt is seeking unspecified financial damages and a court order requiring OpenAI to strengthen its safeguards against misleading advice and the reinforcement of users’ grandiose or delusional beliefs.
He is also accusing the company of failing to provide consumers with adequate warnings about potential risks associated with its products.
OpenAI Responds to the Allegations
An OpenAI spokesperson told the Daily Mail that the circumstances described were deeply distressing.
‘These are incredibly heartbreaking situations and our thoughts are with all those impacted,’ the spokesperson said.
The company added that it had continued improving ChatGPT’s responses in sensitive and acute situations, incorporating input from mental health experts.
‘While ChatGPT is not a substitute for medical or mental health care, our safeguards are designed to identify distress, safely handle harmful requests, and guide users to real-world help.
This work is ongoing, and we continue to improve it in close consultation with clinicians,’ the spokesperson added.
OpenAI Faces Other Lawsuits Over Alleged Chatbot-Related Harm
Elmfelt’s case comes amid a growing number of legal claims against artificial intelligence companies over allegations that their chatbots reinforced harmful beliefs or contributed to serious psychological crises.
In November 2025, seven lawsuits were filed against OpenAI involving allegations that ChatGPT contributed to four suicides and serious psychological crises involving three other people.
One case was brought by the family of 17-year-old Amaurie Lacey, who alleged that ChatGPT encouraged his suicidal behaviour and provided instructions for tying a noose.
Another involved Alan Brooks, who claimed that interactions with ChatGPT triggered delusions and a mental health crisis.
The parents of 16-year-old Adam Raine also filed a high-profile lawsuit following his death by suicide in April 2025.
His family alleged that the chatbot validated his suicidal thoughts, discussed methods of self-harm and offered to help him draft a suicide note.
In December 2025, the estate of Stein-Erik Soelberg filed a separate lawsuit alleging that ChatGPT reinforced a man’s paranoid beliefs before he killed his mother and himself in Connecticut.
Google and Character.AI Also Face Legal Scrutiny
OpenAI is not the only artificial intelligence company facing legal challenges over alleged chatbot-related harm.
Google’s Gemini chatbot has also been named in a lawsuit brought by the parents of a US student who allegedly used the system while planning a suicide attempt.
Meanwhile, Google and Character.AI have agreed to settle five lawsuits brought by families who alleged that Character.AI chatbots harmed children.
Two of the cases involved teenage suicides.
The allegations in the pending lawsuits have not established that the chatbots caused the reported harm, and the companies’ legal liability remains to be determined.
Elmfelt’s case now adds another legal challenge to the growing scrutiny of artificial intelligence chatbots and their responses to users experiencing emotional distress or vulnerable circumstances.
