Elon Musk sues OpenAI and Microsoft for $134 billion in wrongful gains

Elon Musk has initiated legal action against OpenAI and Microsoft, claiming he is entitled to damages amounting to 134 billion as a result of what he describes as wrongful gains accruing to both companies from his early financial support. Musk alleges that without his backing, OpenAI would not exist in its current form.

In a federal court filing, Musk’s legal team asserted that he provided the majority of the seed funding for OpenAI when he co-founded the organisation in 2015. This support has been quantified between 65.5 billion and 109.4 billion in value generated for OpenAI and between 13.3 billion and 25.1 billion for Microsoft, which holds a 27 percent stake in the artificial intelligence firm.

The lawsuit suggests that Musk’s contributions were crucial in establishing OpenAI, lending both his resources and expertise in scaling a business. His lawyer, Steven Molo, highlighted Musk’s significant input and claims that such a financial return reflects the disproportionate gains experienced by the companies involved.

The legal dispute intensified as Musk emphasised that his original intentions were rooted in the founding mission of OpenAI. He expressed concerns that the company, which transitioned to a for-profit structure, has deviated from its original principles. Musk reportedly provided 38 billion in initial funding and argues that the restructuring allowed OpenAI to realise substantial profits, standing in contrast to its original non-profit mission.

OpenAI and Microsoft have dismissed Musk’s claims as unsubstantiated and characterised them as part of what they describe as a harassment campaign against the companies. They argue that Musk’s proposed damages are impractical, asserting that the numbers are exaggerated and misleading.

The legal proceedings are expected to gain heightened attention, with the trial scheduled to commence in April. This case reflects larger discussions regarding the role of early investors in shaping company trajectories and the implications of profit motives within organisations originally established for public benefit.