 "Musk seeks up to $134 bn from OpenAI, Microsoft over alleged gains from his early contributions")
Elon Musk has asked a federal court to award him up to $134 billion from OpenAI and Microsoft, arguing that both companies made significant gains from his early involvement with the artificial intelligence startup. The request was outlined in a court filing submitted on Friday, ahead of a trial expected to begin in April.
According to the filing, OpenAI gained between $65.5 billion and $109.4 billion from Musk’s contributions when he co-founded the organisation in 2015. Microsoft is alleged to have gained between $13.3 billion and $25.1 billion from those same contributions.
OpenAI has described the lawsuit as “baseless” and part of a “harassment” campaign by Musk. A lawyer representing Microsoft said there is no evidence the company “aided and abetted” OpenAI. Both companies challenged Musk’s damages claims in a separate filing on Friday.
Dispute over OpenAI’s mission and structure
Musk, who left OpenAI in 2018 and now runs rival AI company xAI, which develops the chatbot Grok, alleges that OpenAI violated its founding mission. He argues this occurred during a high-profile restructuring that turned the organisation into a for-profit entity and later led to the development of ChatGPT.
Earlier this month, a judge in Oakland, California, ruled that the case will be heard by a jury.
Details of Musk’s early contributions
The court filing states that Musk contributed about $38 million to OpenAI, representing 60% of its early seed funding. It also says he helped recruit staff, connected the founders with key contacts and lent credibility to the project in its early stages.
“Just as an early investor in a startup company may realize gains many orders of magnitude greater than the investor’s initial investment, the wrongful gains that OpenAI and Microsoft have earned – and which Mr. Musk is now entitled to disgorge – are much larger than Mr. Musk’s initial contributions,” Musk said in the filing.
Musk’s damages calculations were prepared by his expert witness, financial economist C. Paul Wazzan, according to the filing. It also states that Musk may seek punitive damages and other penalties, including a possible injunction, if a jury finds either company liable, though it does not specify what form such an injunction might take.
Quick Reads
View AllIn response, OpenAI and Microsoft asked the judge to restrict what Musk’s expert can present to jurors. They argued the analysis is “made up,” “unverifiable” and “unprecedented”, and that it seeks an “implausible” transfer of billions from a nonprofit to a former donor who is now a competitor. The companies also said the damages figures are unreliable and could mislead the jury.
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