Elon Musk is seeking damages ranging from $79 billion to $134 billion from OpenAI and Microsoft.
The case centres on Musk's allegation that he was deceived when he donated $38 million to help establish OpenAI as a nonprofit in 2015.
Musk's lawyer argues that his client deserves a portion of OpenAI's current $500 billion valuation.
Elon Musk is seeking damages ranging from $79 billion to $134 billion from OpenAI and Microsoft, claiming the AI company defrauded him by abandoning its original nonprofit mission and collaborating with the tech giant. The case centres on Musk’s allegation that he was deceived when he donated $38 million to help establish OpenAI as a nonprofit in 2015.
SurveyAccording to court documents, Musk’s lawyer Steven Molo argued that his client deserves a portion of OpenAI’s current $500 billion valuation, reports Bloomberg. “Just as an early investor in a startup company may realise gains many orders of magnitude greater than the investor’s initial investment, the wrongful gains that OpenAI and Microsoft have earned – and which Mr. Musk is now entitled to disgorge – are much larger than Mr. Musk’s initial contribution,” Molo wrote.
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The damages calculation comes from financial economist expert witness C. Paul Wazzan, who combined both Musk’s monetary donations and non-financial contributions, including technical and business guidance. Wazzan figured that OpenAI’s wrongful gains total between $65.50 billion and $109.43 billion, while Microsoft’s range from $13.30 billion to $25.06 billion. Musk also plans to pursue additional punitive damages, the report mentions.
For those unaware, Musk left OpenAI’s board in 2018 and launched his own AI venture in 2023. He initiated legal action in 2024 against Sam Altman, OpenAI’s co-founder and CEO, over plans to convert the organisation into a for-profit business.
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“Mr Musk’s lawsuit continues to be baseless and a part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial,” OpenAI stated. “This latest unserious demand is aimed solely at furthering this harassment campaign.”
OpenAI has also cautioned investors to expect attention-seeking claims from Musk as the trial approaches.
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Ayushi Jain
Ayushi works as Chief Copy Editor at Digit, covering everything from breaking tech news to in-depth smartphone reviews. Prior to Digit, she was part of the editorial team at IANS. View Full Profile
