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Elon Musk Seeks $79 Billion to $134 Billion in Damages from OpenAI and Microsoft
Elon Musk is seeking a staggering $79 billion to $134 billion in damages from OpenAI and Microsoft, claiming that the AI company defrauded him by abandoning its nonprofit mission. According to a report by Bloomberg, Musk’s claim is based on his initial $38 million seed donation when he co-founded the startup in 2015. This would translate to a 3,500-fold return on his investment, as determined by expert witness C. Paul Wazzan, a financial economist with extensive experience in valuation and damages calculations.
Calculating Wrongful Gains
Wazzan’s analysis combines Musk’s initial financial contributions with the technical know-how and business contributions he offered to OpenAI’s early team, calculating wrongful gains of $65.5 billion to $109.4 billion for OpenAI and $13.3 billion to $25.1 billion for Microsoft, which currently owns a 27% stake in the company. Musk’s legal team argues that he should be compensated as an early startup investor who sees returns “many orders of magnitude greater” than his initial investment.
However, the sheer scale of the damages demand raises questions about the true motivations behind the lawsuit. With a personal fortune of approximately $700 billion, making him the world’s richest person, Musk’s wealth far exceeds that of Google co-founder Larry Page, the world’s second-richest person, by a stunning $500 billion, according to Forbes’ billionaires list. In November, Tesla shareholders approved a $1 trillion pay package for Musk, the largest corporate pay package in history.
A Pattern of Harassment or Legitimate Grievance?
Against this backdrop, even a $134 billion payout from OpenAI would represent a relatively modest addition to Musk’s wealth, likely reinforcing OpenAI’s characterization of the lawsuit as part of an “ongoing pattern of harassment” rather than a legitimate financial grievance. OpenAI has reportedly warned investors and business partners that Musk will make “deliberately outlandish, attention-grabbing claims” as the lawsuit heads to trial in April.
The case will be heard in Oakland, California, and is likely to attract significant attention given the high-profile nature of the parties involved. As the trial approaches, it remains to be seen whether Musk’s claims will be upheld or dismissed. For more information on this developing story, visit Here
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