Musk seeks up to $134 billion from OpenAI, Microsoft in fraud lawsuit

Elon Musk is pursuing a fraud lawsuit against OpenAI and Microsoft, demanding damages ranging from $79 billion to $134 billion. The claim stems from Musk’s assertion that OpenAI abandoned its original non-profit mission by partnering with Microsoft and operating as a for-profit entity. According to a court filing, Musk’s lawyer, Steven Molo, argues he is entitled to a portion of OpenAI’s $500 billion valuation due to his initial $38 million investment and contributions to the company’s founding in 2015. An expert witness, C Paul Wazzan, calculated the potential damages, attributing $65.50 to $109.43 billion to OpenAI and $13.30 to $25.06 billion to Microsoft, factoring in both financial and non-monetary contributions from Musk.

OpenAI and Microsoft have vehemently denied the allegations, with OpenAI characterizing the lawsuit as “baseless” and part of a “harassment campaign” by Musk. Sam Altman, OpenAI’s CEO, has accused Musk of weaponizing the legal system to hinder a competitor. The case is scheduled for a jury trial in late April in Oakland, California, after a federal judge rejected a final attempt by OpenAI and Microsoft to avoid it.

Musk left OpenAI’s board in 2018 and subsequently launched his own AI company in 2023. He plans to seek punitive damages in addition to the substantial financial compensation requested, based on the alleged wrongful gains made by OpenAI and Microsoft.

(Source：Business Standard)