Elon Musk Seeks $134 Billion from OpenAI and Microsoft Over Early Contributions
Elon Musk has filed a federal lawsuit seeking up to $134 billion in damages from OpenAI and Microsoft, claiming that both companies unfairly profited from his early involvement in the AI startup. The case is set to go to trial in April in Oakland, California.
According to court filings, Musk alleges that OpenAI earned between $65.5 billion and $109.4 billion from his initial support when the company was founded in 2015, while Microsoft gained an additional $13.3 billion to $25.1 billion through its partnerships and investments. Musk contends that his early contributions were critical, providing both the majority of the seed funding and valuable credibility to the fledgling project.
“Without Elon Musk, there’d be no OpenAI. He provided the bulk of the seed funding, lent his reputation, and shared his expertise in building and scaling a company,” said Musk’s lead trial lawyer, Steven Molo.
Musk, who left OpenAI in 2018 and now runs xAI, the company behind the competing chatbot Grok, argues that OpenAI strayed from its original nonprofit mission when it restructured into a for-profit entity, further fueling his claims.
OpenAI has dismissed the lawsuit as an “unserious demand” and described it as part of Musk’s ongoing harassment campaign against the company. Microsoft has not publicly commented on the amount of damages Musk is seeking.
Early Contributions and Financial Claims
Musk reportedly contributed about $38 million, making up roughly 60% of OpenAI’s initial seed funding. He also helped recruit staff, connect the founders with key contacts, and lend credibility to the project at its inception.
Musk’s filings argue that, like early investors in a startup who see returns far exceeding their initial investment, the “wrongful gains” OpenAI and Microsoft earned from his contributions far exceed the original amounts he provided.
The financial calculations supporting Musk’s claims were prepared by C. Paul Wazzan, a financial economist serving as his expert witness. Musk may also seek punitive damages and other penalties, including a potential injunction, if the jury rules in his favor.
OpenAI and Microsoft have challenged Musk’s claims in court, asking the judge to limit or exclude the expert testimony, describing the analysis as unverifiable and unprecedented. Both companies also dispute the damages figures, arguing that the methodology is unreliable and could mislead jurors.
The case raises complex questions about the value of early contributions to a startup, the responsibilities of founders, and how profits should be shared when initial supporters leave but the company later achieves enormous financial success.
Source: Reuters
