Elon Musk Escalates Legal Fight with OpenAI and Microsoft
Elon Musk is demanding massive damages from OpenAI and Microsoft. The billionaire claims they defrauded him. He wants between $79 billion and $134 billion. This legal battle is heating up fast.
The Core of Musk's Claim
Musk argues he deserves a portion of OpenAI's current valuation. The company is now worth an estimated $500 billion. His claim stems from a small initial investment. He donated $38 when he co-founded OpenAI back in 2015.
His lawyers filed detailed calculations in court last Friday. They used the analysis of financial economist C. Paul Wazzan. The filing came just one day after a key court decision. A federal judge rejected efforts by OpenAI and Microsoft to avoid a jury trial. That trial is scheduled for late April.
Musk's legal team draws a direct comparison to startup investing."Just as an early investor in a startup company may realize gains many orders of magnitude greater than the investor’s initial investment, the wrongful gains that OpenAI and Microsoft have earned – and which Mr. Musk is now entitled to disgorge – are much larger than Mr. Musk’s initial contributions," said lawyer Steven Molo in the filing.
A History of Conflict
Elon Musk's relationship with OpenAI has soured dramatically. He left the company's board in 2018. After OpenAI launched ChatGPT in late 2022, Musk became one of its most vocal critics. He then founded his own artificial intelligence company, xAI. That firm created the Grok chatbot.
The lawsuit centers on OpenAI's shift away from its original mission. Musk alleges the company abandoned its non-profit roots. He claims this happened when it formed a deep partnership with Microsoft, the tech giant based in Redmond, Washington.
OpenAI's Strong Rebuttal
OpenAI has fired back with a forceful statement. The company calls Musk's lawsuit completely baseless. It characterizes the legal action as part of a pattern of harassment.
"Mr Musk’s lawsuit continues to be baseless and a part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial," the statement read. "This latest unserious demand is aimed solely at furthering this harassment campaign."
The company also issued a warning to its investors. It said they should expect more attention-grabbing claims from Musk as the court case progresses. The legal drama shows no signs of slowing down.
This high-stakes corporate battle will play out in court over the coming months.
