Elon Musk Seeks $134 Billion Payout from OpenAI and Microsoft
The ongoing dispute between Elon Musk and OpenAI has escalated, revealing significant financial stakes. According to a recent filing highlighted by Bloomberg, Musk is requesting a payout ranging from $79 billion to $134 billion. This amount is claimed to be tied to the “wrongful gains” made by OpenAI and its partner, Microsoft.
Basis of the Lawsuit
Musk’s legal claims stem from his initial investment in OpenAI. He contributed $38 million during the company’s early development, which he argues entitles him to a share of OpenAI’s current valuation, estimated at $500 billion. Musk asserts that he provided nearly 60% of the initial funding and supported the organization through recruiting key talent and offering advisory capabilities.
Financial Valuations
- OpenAI’s wrongful earnings: $65.5 billion to $109.43 billion
- Microsoft’s wrongful earnings: $13.3 billion to $25.06 billion
These financial estimates are presented by C. Paul Wazzan, a financial economist acting as Musk’s expert witness in the case. The lawsuit alleges that both companies have profited unduly from practices contrary to their stated missions.
Timeline of Events
The legal battle started in March 2024 after Musk accused OpenAI of abandoning its nonprofit status. He subsequently included Microsoft in the suit, asserting its complicity in the alleged misconduct. Musk sought an injunction in response to OpenAI’s efforts to reconfigure its corporate structure.
Additional Legal Challenges
Beyond this primary lawsuit, Musk has also implicated OpenAI in a separate case involving Apple. He accuses both companies of engaging in monopolistic behavior, which he claims limits his emerging company, xAI, from competing fairly in the App Store.
The outcome of these legal proceedings could have far-reaching implications for Musk, OpenAI, and Microsoft, as they navigate this complex intersection of technology and law.
