Musk Seeks Billions from OpenAI, Microsoft in Lawsuit

Entrepreneur Elon Musk is seeking up to USD 134 billion from OpenAI and Microsoft, claiming he deserves "wrongful gains" from his early support for OpenAI. This demand comes in a federal court filing ahead of his trial against the two technology organisations.

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Musk contends OpenAI gained between USD 65.5 billion and USD 109.4 billion from his contributions when co-founding the startup. Microsoft, he stated, gained between USD 13.3 billion and USD 25.1 billion due to his involvement.

Steven Molo, Musk's lead trial lawyer, asserted that "Without Elon Musk, there'd be no OpenAI." Molo highlighted Musk's provision of seed funding, lending of his reputation, and business scaling knowledge to the organisation.

OpenAI called Musk's demand "unserious" and part of what it described as his "harassment campaign" against the organisation. OpenAI has also labelled the lawsuit "baseless."

A Microsoft lawyer previously stated there is no evidence the company "aided and abetted" OpenAI. Both companies have challenged Musk's damages claims in a separate court filing.

Musk, who left OpenAI in 2018 and now operates xAI with its chatbot Grok, alleges OpenAI violated its founding mission. He claims this occurred through a high-profile restructuring into a for-profit entity.

A judge in Oakland, California, ruled that a jury will hear the trial, which is expected to begin in April. Musk's filing states he contributed about USD 38 million, representing 60% of OpenAI's early seed funding.

He also helped recruit staff, connected founders with contacts, and lent credibility to the project during its creation. Musk argues that the wrongful gains earned by OpenAI and Microsoft are much larger than his initial contributions.

He compares this to an early investor realising gains many orders of magnitude greater than their initial investment. Financial economist C. Paul Wazzan, an expert witness for Musk, calculated these contributions to OpenAI and Microsoft.

Musk may pursue punitive damages and other penalties, including a possible injunction, if either company is found liable. The filing did not specify the form any injunction might take.

In their own filing, OpenAI and Microsoft requested the judge to restrict what Musk's expert may present to jurors. They argue Wazzan's analysis should be excluded as "made up," "unverifiable," and "unprecedented."

The companies also called it an "implausible" attempt to transfer billions from a nonprofit to a former donor who is now a competitor. They dispute Musk's damages figures broadly, stating the expert's approach is unreliable and could mislead the jury.

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• Elon Musk seeks up to USD 134 billion from OpenAI and Microsoft.

• Musk claims "wrongful gains" from his early support, including 60% of OpenAI's initial seed funding.

• OpenAI calls Musk's demand "unserious" and part of a "harassment campaign."

Source: REUTERS