Elon Musk Seeks $79 Billion to $134 Billion in Damages from OpenAI and Microsoft
Elon Musk is demanding a jaw-dropping $79 billion to $134 billion in damages from OpenAI and Microsoft, alleging that the AI company has strayed from its nonprofit mission, as reported by Bloomberg. The valuation comes from financial economist C. Paul Wazzan, an expert witness who has extensive experience in complex commercial litigation cases.
Wazzan’s analysis is based on Musk’s initial $38 million seed donation when he co-founded OpenAI in 2015, which he believes entitles Musk to a significant share of the company’s current $500 billion valuation. This would represent a remarkable 3,500-fold return on Musk’s investment.
According to Wazzan, Musk’s contributions to OpenAI, both financially and in terms of technical expertise and business acumen, justify the damages sought. He calculates wrongful gains of $65.5 billion to $109.4 billion for OpenAI and $13.3 billion to $25.1 billion for Microsoft, which holds a 27% stake in the company.
Musk’s legal team argues that he should be compensated as an early investor in a startup, expecting returns far beyond his initial investment. However, the magnitude of the damages claim suggests that the lawsuit is about more than just money.
Despite Musk’s already substantial wealth of around $700 billion, making him the world’s richest person, a potential $134 billion payout from OpenAI would only marginally increase his fortune. This reinforces OpenAI’s view that the lawsuit is part of a pattern of harassment rather than a legitimate financial dispute.
OpenAI has warned its investors and business partners of Musk’s intention to make sensational claims as the lawsuit progresses to trial in April. The case will be heard in Oakland, California, near San Francisco.
