Musk’s OpenAI Lawsuit: Seeking $134 Billion Despite a $700 Billion Fortune
Elon Musk is seeking a staggering amount between $79 billion and $134 billion in damages from OpenAI and Microsoft. He alleges that OpenAI defrauded him by abandoning its nonprofit agenda. This claim was first reported by Bloomberg, highlighting Musk’s request for compensation as an early investor who contributed $38 million when he co-founded the organization in 2015. A financial economist, C. Paul Wazzan, validated Musk’s demand, suggesting it reflects a 3,500-fold return on his initial investment.
Wazzan’s assessment details the wrongful gains attributed to OpenAI and Microsoft, with figures ranging from $65.5 billion to $109.4 billion for OpenAI and between $13.3 billion and $25.1 billion for Microsoft, which holds a 27% stake in the company. Musk’s legal team contends he deserves to profit significantly more than his initial contribution, citing the larger scale of returns typical for early startup investors.
Despite Musk’s wealth standing at roughly $700 billion, making him the richest individual globally, the huge damage claim raises questions about the nature of this legal dispute. Even if awarded, the proposed $134 billion would seem like a minor addition to Musk’s fortunes, which have been significantly bolstered by stock valuations, including a historic $1 trillion pay package approved by Tesla shareholders.
OpenAI has characterized Musk’s lawsuit as part of a “pattern of harassment,” dismissing it as lacking legitimacy. Amid ongoing litigation, OpenAI has preemptively warned partners of “deliberately outlandish claims” anticipated from Musk as the case approaches its trial date in April, to be held in Oakland, California.
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