Elon Musk is pursuing damages of between $79 billion and $134 billion from OpenAI and Microsoft in an ongoing lawsuit. The claim stems from Musk's early contributions to OpenAI and allegations that the company abandoned its non-profit roots. A financial expert's analysis forms the basis of the payout demand.
The dispute between Elon Musk and OpenAI has escalated with a recent court filing that quantifies the stakes. According to the document, Musk is entitled to a share of OpenAI's purported $500 billion valuation due to his foundational role in the company. Musk provided approximately $38 million in seed funding, accounting for about 60 percent of the non-profit's initial capital. In addition, he assisted with recruiting key employees, making business introductions, and offering startup guidance.
The damages estimate comes from C. Paul Wazzan, a financial economist acting as Musk's expert witness. Wazzan calculated that OpenAI realized wrongful gains ranging from $65.5 billion to $109.43 billion, while Microsoft, a major partner, benefited by $13.3 billion to $25.06 billion. These figures represent what the filing describes as liability for the defendants' "wrongful gains."
Musk, CEO of xAI, initiated the lawsuit in March 2024, accusing OpenAI of breaching its non-profit status. He later included Microsoft as a co-defendant and sought an injunction amid OpenAI's plans to restructure its corporate form. This case is separate from another suit where Musk has targeted OpenAI and Apple over alleged monopolistic practices that hinder xAI's access to the App Store.
The filing, first reported by Bloomberg, highlights the intensifying legal battles in the AI sector as former collaborators clash over mission and profits.
