Billionaire entrepreneur Elon Musk has escalated his legal battle against OpenAI and Microsoft, seeking damages ranging from $79 billion to $134 billion for allegedly abandoning OpenAI’s original non-profit mandate and misleading him as a founding contributor.
The damages claim was detailed in a court filing on Friday, a day after a US federal judge rejected OpenAI and Microsoft’s attempt to dismiss the case, paving the way for a jury trial scheduled for late April in Oakland, California.
Claim Tied to OpenAI’s Valuation and Early Contributions
According to the filing, Musk argues that he was defrauded of both his $38 million seed contribution and the long-term value created by OpenAI after it transitioned towards a for profit structure. The filing cites calculations by financial economist C. Paul Wazzan, who estimates that Musk is entitled to a share of OpenAI’s current valuation, reportedly close to $500 billion.
Musk’s lawyer, Steven Molo, stated that early contributors to startups often realise gains vastly exceeding their initial investment and that OpenAI and Microsoft’s alleged “wrongful gains” should be disgorged in Musk’s favour.
Breakdown of Alleged Wrongful Gains
As per the expert assessment cited in court filings, the estimated wrongful gains range from $65.5 billion to $109.4 billion for OpenAI and $13.3 billion to $25.1 billion for Microsoft. Musk has also indicated he intends to seek punitive damages, which could further increase the total claim.
Background of the Dispute
Musk co-founded OpenAI in 2015 but exited its board in 2018. He later launched a rival artificial intelligence venture in 2023 and initiated legal action in 2024 against OpenAI and its CEO Sam Altman, challenging the company’s restructuring and closer commercial alignment with Microsoft.
OpenAI, the creator of ChatGPT, announced its restructuring in October, granting Microsoft a 27% ownership stake while retaining nonprofit oversight of its for profit arm.
OpenAI Pushes Back
OpenAI has strongly denied Musk’s allegations, calling the lawsuit baseless. In a statement, the company said Musk’s claims were part of an ongoing harassment campaign and reiterated its intention to contest the matter at trial.
The case is being closely watched across Silicon Valley, as it could have significant implications for AI governance, nonprofit-to-for-profit transitions, and investor rights in emerging technology platforms.
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