Elon Musk is taking his legal battle with OpenAI and Microsoft to the next level, now seeking damages between $79 billion and $134 billion over allegations that the artificial intelligence company strayed from its nonprofit mission and deceived him as an early supporter. The latest developments were outlined in a recent court filing, as reported by Bloomberg, as the case progresses towards a jury trial set for later this spring.
In the filing, Musk asserts that he is entitled to a significant portion of OpenAI’s current valuation, estimated at around $500 billion. Musk played a pivotal role in the founding of OpenAI in 2015, providing $38 million in seed funding before stepping down from the board in 2018. His attorney, Steven Molo, argues that OpenAI’s transition to a for-profit model, coupled with its close ties to Microsoft, led to “unlawful gains” that Musk should be able to recoup.
The alleged gains are substantial, with an expert witness hired by Musk calculating that OpenAI benefited by $65.5 billion to $109.4 billion, while Microsoft’s gains fall between $13.3 billion to $25.1 billion. When combined, Musk’s total damages claim reaches up to $134 billion. The filing draws parallels between Musk’s position and that of an early investor in a startup, where initial contributions can result in significant returns if the company succeeds.
These latest developments come on the heels of U.S. District Judge Yvonne Gonzalez Rogers ruling that there is sufficient evidence for Musk’s lawsuit to proceed to trial, despite attempts by OpenAI and Microsoft to dismiss it. The trial is currently slated for late April in Oakland, California.
OpenAI has vehemently denied Musk’s allegations, calling the lawsuit unfounded and dismissing the damages demand as “frivolous.” In a statement, the company characterized the filing as part of a continued harassment campaign and cautioned investors to brace for more sensational claims as the case unfolds. Microsoft opted not to provide a comment on the matter.
Meanwhile, Musk seems undeterred by the legal battle, expressing anticipation for the upcoming trial on X. In a recent post, he shared his excitement for the discovery process and testimony, hinting that they would be mind-blowing. When a user described the trial as a circus, Musk quipped back that it would be a “very entertaining circus.”
The lawsuit unfolds as Musk intensifies efforts at his AI venture, xAI, which recently secured $20 billion in funding to advance the development of its Grok models. Additionally, xAI and X are pursuing antitrust litigation against OpenAI and Apple, underscoring the personal and competitive nature of this legal dispute.
As the saga continues to unfold, all eyes are on the impending trial and the potential ramifications it holds for the tech industry at large. Stay tuned for more updates as the case progresses.