Musk seeks $134B from OpenAI and Microsoft
According to Bloomberg, Elon Musk claims between $79 billion and $134 billion in damages from OpenAI and Microsoft in a recent legal filing.
The filing, part of a lawsuit alleging OpenAI abandoned its non-profit mission, contends Musk is entitled to a portion of OpenAI’s $500 billion valuation. Musk provided $38 million in seed funding, constituting approximately 60% of the non-profit’s initial capital, along with employee recruitment, business introductions, and startup guidance.
Financial economist C. Paul Wazzan, an expert for Musk in the case, calculated OpenAI’s wrongful gains at $65.5 billion to $109.43 billion, with Microsoft’s at $13.3 billion to $25.06 billion.
Musk initiated the lawsuit against OpenAI in March 2024, alleging a breach of its non-profit status. He subsequently added Microsoft as a defendant and sought an injunction when OpenAI announced corporate restructuring plans. Musk has also accused OpenAI and Apple of monopolistic practices affecting xAI’s App Store access in a separate legal action.