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Elon Musk OpenAI Lawsuit 134 Billion Damages: The Battle for AI Dominance

2 min readSource

Elon Musk is seeking up to $134 billion in damages from OpenAI and Microsoft, claiming he was defrauded. The lawsuit heads to trial this April in California.

A staggering $79 billion to $134 billion. That's the amount Elon Musk is demanding from OpenAI and Microsoft, alleging they defrauded him by abandoning the AI company's original nonprofit mission. As first reported by Bloomberg, the legal battle is escalating into one of the most significant financial disputes in tech history.

The Math Behind the Elon Musk OpenAI Lawsuit 134 Billion Damages

The figure was calculated by financial economist C. Paul Wazzan, who argues that Musk’s early contributions entitle him to a massive slice of OpenAI’s current $500 billion valuation. Based on Musk’s $38 million seed donation in 2015, Wazzan claims Musk deserves a 3,500-fold return on his investment, mirroring the returns early startup investors typically see.

Wazzan’s analysis breaks down the "wrongful gains" as follows: $65.5 billion to $109.4 billion from OpenAI, and $13.3 billion to $25.1 billion from Microsoft, which currently holds a 27% stake in the AI startup.

Justice or Harassment? A High-Stakes Trial Awaits

Despite the massive demand, it’s not just about the cash. Musk’s personal fortune currently sits near $700 billion, making him the world's richest person. Reuters recently noted that his wealth eclipses Google co-founder Larry Page's by $500 billion. Furthermore, Tesla shareholders approved a record-breaking $1 trillion pay package for him last November.

OpenAI isn't taking this lightly. In a letter to partners, the company called the lawsuit part of an "ongoing pattern of harassment." They’ve warned that Musk is making "outlandish, attention-grabbing claims" as the case heads to trial this April in Oakland, California.

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