Musk Seeks $134B in OpenAI Lawsuit Amidst $700B Wealth
Elon Musk is pursuing a staggering amount between $79 billion and $134 billion in damages from OpenAI and Microsoft. He claims that OpenAI has deviated from its original nonprofit mission, thereby defrauding him. This information was first reported by Bloomberg.
Musk’s Damages Claim Explained
The estimated damages stem from analysis conducted by expert witness C. Paul Wazzan, a seasoned financial economist. Wazzan has significant experience in commercial litigation, having been deposed nearly 100 times and testifying in various trials.
Valuation and Investment Details
Wazzan’s evaluation suggests that Musk should receive a substantial portion of OpenAI’s current valuation, which stands at approximately $500 billion. This valuation reflects Musk’s $38 million seed donation when he co-founded the startup in 2015.
- Musk’s potential return on investment: 3,500-fold.
- Estimated wrongful gains for OpenAI: $65.5 billion to $109.4 billion.
- Estimated wrongful gains for Microsoft (27% ownership): $13.3 billion to $25.1 billion.
Musk’s Wealth Context
Musk’s personal fortune is currently around $700 billion, making him the world’s richest individual. His wealth is significantly higher than that of Larry Page, a Google co-founder, by about $500 billion according to Forbes.
Corporate Pay Packages
This lawsuit occurs against the backdrop of Tesla shareholders granting Musk a $1 trillion pay package, the largest in corporate history. This context shows that even a $134 billion win from OpenAI would be a minor addition to Musk’s wealth.
Legal Battle Ahead
The ongoing dispute appears to be more than just a financial claim. OpenAI has characterized Musk’s lawsuit as part of an “ongoing pattern of harassment.”
Recently, OpenAI sent a letter to investors, indicating that Musk may make exaggerated claims as the case moves forward. The legal battle is set to be heard in April in Oakland, California, located about 15 miles from San Francisco.
