Elon Musk is pursuing legal action against OpenAI and Microsoft, seeking up to $134 billion in what he describes as “wrongful gains” stemming from his early involvement with the artificial intelligence company.
Details of the Lawsuit
According to a federal court filing made public on Friday, Elon Musk asserts that OpenAI earned between $65.5 billion and $109.4 billion from his initial contributions as a co-founder starting in 2015. Microsoft is said to have gained between $13.3 billion and $25.1 billion. The lawsuit precedes a trial scheduled to begin in April.
Background and Claims
Elon Musk, who departed OpenAI in 2018 and now leads xAI—a competitor to OpenAI’s ChatGPT—contends that OpenAI breached its original mission by converting into a for-profit entity. He states that his early involvement included providing approximately $38 million, which accounted for 60% of OpenAI’s seed funding, as well as recruiting staff, facilitating key connections, and lending credibility to the startup.
His filing argues that the financial gains realized by OpenAI and Microsoft far exceed his initial investment, and thus he is entitled to recover those “wrongful gains.” The valuation of these contributions was supported by financial economist C. Paul Wazzan, serving as Musk’s expert witness.
Responses and Next Steps
OpenAI has dismissed the lawsuit as “baseless” and characterized it as harassment. Microsoft has denied any wrongdoing, with its legal representatives stating there is no proof the company “aided and abetted” OpenAI. Neither party nor Musk’s legal team provided immediate comments outside business hours.
A judge in Oakland, California, has ruled that the case will proceed to a jury trial. Musk’s filing also mentions the possibility of seeking punitive damages and other legal remedies, including injunctions, should liability be established.
