Elon Musk is looking for a $134 billion payout from OpenAI and Microsoft
We now have some idea of what's at stake in the longstanding feud between Elon Musk and OpenAI. As first reported by Bloomberg, the latest filing, as part of a lawsuit that accuses the AI giant of abandoning its non-profit status, claims that Musk is owed anywhere between $79 billion and $134 billion in damages from the "wrongful gains" of OpenAI and Microsoft.
Musk claimed in the filing that he's entitled to a portion of OpenAI's recent valuation at $500 billion, after contributing $38 million in "seed funding" during the AI company's startup years. Along with providing "roughly 60 percent of the nonprofit's seed funding," Musk offered recruiting of key employees, introductions with business contacts and startup advice, according to the filing. The monetary estimate comes from C. Paul Wazzan, a financial economist who's serving as Musk's expert in the case. According to Wazzan's calculations, OpenAI earned between $65.5 billion and $109.43 billion in wrongful gains, while Microsoft saw between $13.3 billion and $25.06 billion.
The lawsuit between Elon Musk and OpenAI dates back to March 2024, when the xAI CEO first filed a legal action claiming that OpenAI violated its non-profit status. Musk later added Microsoft as another defendant and even tried to get an injunction when OpenAI announced efforts to reorganize its corporate structure. Besides this suit, Musk has named OpenAI in another legal battle, accusing the company, along with Apple, of monopolistic practices that prevent xAI from getting a fair shot in the App Store.This article originally appeared on Engadget at https://www.engadget.com/big-tech/elon-musk-is-looking-for-a-134-billion-payout-from-openai-and-microsoft-171824945.html?src=rss
