Musk wants to sue OpenAI and Microsoft for up to $134 billion.
Elon Musk demands $79 billion to $134 billion in damages from OpenAI Inc. and Microsoft.
Elon Musk has demanded $79 billion to $134 billion in damages from OpenAI Inc. and Microsoft for allegedly defrauding him by forsaking its charity origins and collaborating with the software behemoth.
A day after a federal judge denied OpenAI and Microsoft's last attempt to defer a jury trial scheduled for late April in Oakland, California, Musk's attorney described the damages request in a court filing on Friday.
The lawsuit claims that Musk is entitled to a portion of OpenAI's current $500 billion valuation because he was robbed of the $38 million in seed money he provided to the business when he helped form it in 2015, using estimates made by C. Paul Wazzan, a financial economist expert witness.
"The wrongful gains that OpenAI and Microsoft have earned, which Mr. Musk is now entitled to disgorge, are much larger than Mr. Musk's initial contributions, just as an early investor in a startup company may realize gains many orders of magnitude greater than the investor's initial investment," wrote Steven Molo, Musk's attorney.
Musk quit OpenAI's board in 2018, started his own AI firm in 2023, and started a legal dispute with Sam Altman in 2024 over Altman's intentions to run OpenAI as a for-profit enterprise. Microsoft and OpenAI have refuted his claims.
"We look forward to demonstrating this at trial, as Mr. Musk's lawsuit remains baseless and a part of his ongoing pattern of harassment," OpenAI said in a statement. "The goal of this most recent insignificant demand is to continue this harassment campaign."
As the legal dispute goes to trial, OpenAI has cautioned investors to anticipate Musk making eye-catching promises.
Microsoft chose not to respond.
ChatGPT's creator, OpenAI, revealed its reorganization in October. In a move that will maintain the startup's nonprofit arm in charge of its for-profit activities, it announced at the time that it had given its longtime supporter Microsoft a 27% ownership position.
Altman has condemned Musk's lawsuit against OpenAI's reorganization as using the legal system as a weapon to impede a rival.
According to the document, Wazzan, the expert witness, determined the damages sought by adding together Musk's monetary and non-monetary contributions to OpenAI, including technical and commercial assistance. According to his calculations, OpenAI's unjust gains range from $65.50 billion to $109.43 billion, while Microsoft's range from $13.30 billion to $25.06 billion.
A day after a federal judge denied OpenAI and Microsoft's last attempt to defer a jury trial scheduled for late April in Oakland, California, Musk's attorney described the damages request in a court filing on Friday.
The lawsuit claims that Musk is entitled to a portion of OpenAI's current $500 billion valuation because he was robbed of the $38 million in seed money he provided to the business when he helped form it in 2015, using estimates made by C. Paul Wazzan, a financial economist expert witness.
"The wrongful gains that OpenAI and Microsoft have earned, which Mr. Musk is now entitled to disgorge, are much larger than Mr. Musk's initial contributions, just as an early investor in a startup company may realize gains many orders of magnitude greater than the investor's initial investment," wrote Steven Molo, Musk's attorney.
Musk quit OpenAI's board in 2018, started his own AI firm in 2023, and started a legal dispute with Sam Altman in 2024 over Altman's intentions to run OpenAI as a for-profit enterprise. Microsoft and OpenAI have refuted his claims.
"We look forward to demonstrating this at trial, as Mr. Musk's lawsuit remains baseless and a part of his ongoing pattern of harassment," OpenAI said in a statement. "The goal of this most recent insignificant demand is to continue this harassment campaign."
As the legal dispute goes to trial, OpenAI has cautioned investors to anticipate Musk making eye-catching promises.
Microsoft chose not to respond.
ChatGPT's creator, OpenAI, revealed its reorganization in October. In a move that will maintain the startup's nonprofit arm in charge of its for-profit activities, it announced at the time that it had given its longtime supporter Microsoft a 27% ownership position.
Altman has condemned Musk's lawsuit against OpenAI's reorganization as using the legal system as a weapon to impede a rival.
According to the document, Wazzan, the expert witness, determined the damages sought by adding together Musk's monetary and non-monetary contributions to OpenAI, including technical and commercial assistance. According to his calculations, OpenAI's unjust gains range from $65.50 billion to $109.43 billion, while Microsoft's range from $13.30 billion to $25.06 billion.
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