Elon Musk’s $134 Billion Court Battle with OpenAI and Microsoft
Elon Musk has intensified his legal confrontation with OpenAI and Microsoft, asserting that the two firms profited significantly from his initial investment in the artificial intelligence startup and now owe him a portion of those earnings, according to the reports. In a court filing submitted on Friday, Musk stated that he is seeking up to $134 billion from OpenAI and Microsoft, contending that he is entitled to the “wrongful gains” they accrued from his contributions during OpenAI’s early years. The filing indicates that OpenAI gained the most from Musk’s early support. He estimates that the ChatGPT maker gained between $65.5 billion and $109.4 billion from his involvement as a co-founder starting in 2015. Musk claimed that Microsoft, which later became a significant partner and investor in OpenAI, is said to have gained between $13.3 billion and $25.1 billion. The filing was submitted prior to Musk’s trial against both companies in federal court.
OpenAI previously characterized the lawsuit as “baseless” and a component of a “harassment” campaign orchestrated by Musk. A lawyer representing Microsoft has stated that there is no evidence to suggest the company “aided and abetted” OpenAI. Musk departed from OpenAI in 2018 and currently leads the competing AI firm xAI, which is behind the chatbot Grok. He claims that OpenAI has deviated from its original mission by transforming into a for-profit organization. A judge in Oakland, California, determined earlier this month that the case will proceed to a jury trial, anticipated to commence in April. In the filing, Musk stated that he contributed approximately $38 million, which represented 60 percent of OpenAI’s initial seed funding. He stated that he assisted in recruiting staff, connecting founders with essential industry contacts, and providing credibility to the organization during its formative period. “Just as an early investor in a startup company may realise gains many orders of magnitude greater than the investor’s initial investment, the wrongful gains that OpenAI and Microsoft have earned – and which Musk is now entitled to disgorge – are much larger than Mr Musk’s initial contributions,” Musk argued.
If the jury determines that either OpenAI or Microsoft is liable, Musk may pursue punitive damages and additional penalties, which could include a potential injunction. The social media platform X, owned by Musk, has unveiled a significant cash incentive designed to enhance long-form writing on the platform. Last week, the announcement was shared via X’s Creators account, stating that the “top article” of the forthcoming payout period would be awarded the prize. In response to the post, Musk stated: “$1M prize for the top X article.”
As stated in the regulations released on X’s legal platform, the contest is set to take place from January 16 to January 28. Eligibility is restricted to legal residents of the United States and Washington, DC, who are a minimum of 18 years of age. Individuals employed by X, along with their immediate family members, are ineligible to take part. To participate, individuals must hold a subscription to either Premium or Premium+ and submit an original article on X within the contest timeframe. Creators have the opportunity to submit multiple entries; however, it is essential that each article adheres to the platform’s eligibility criteria.
