Elon Musk Seeks Massive Payout from OpenAI and Microsoft Over Alleged Non-Profit Breach
A recent court filing has shed new light on the long-standing feud between Elon Musk and AI giant OpenAI, revealing that the billionaire is seeking a staggering $134 billion payout from both companies. The lawsuit, which accuses OpenAI of abandoning its non-profit status, claims that Musk is owed damages for what he terms "wrongful gains" earned by the company.
According to the filing, Musk contributed nearly 60% of OpenAI's initial seed funding and provided valuable advice, recruitment services, and introductions to key business contacts. He even put in $38 million himself during the startup years. Now, financial economist C. Paul Wazzan is estimating that OpenAI earned between $65.5 billion and $109.43 billion in excessive profits, while Microsoft reaped an estimated $13.3 billion to $25.06 billion.
The dispute dates back to March 2024 when Musk first filed a lawsuit against OpenAI, claiming the company had breached its non-profit status. He later added Microsoft as a defendant, seeking to block efforts by OpenAI to restructure its corporate setup. The case has taken another turn with Musk now pursuing an even larger payout.
Musk's claims are not limited to this lawsuit; he is also accusing OpenAI and Apple of monopolistic practices that unfairly restrict xAI from competing in the App Store. With these claims, Musk is seeking a substantial share of OpenAI's current valuation of $500 billion. The exact amount is unclear, but it has sent shockwaves through the tech industry, highlighting the intense battle for control among AI giants.
A recent court filing has shed new light on the long-standing feud between Elon Musk and AI giant OpenAI, revealing that the billionaire is seeking a staggering $134 billion payout from both companies. The lawsuit, which accuses OpenAI of abandoning its non-profit status, claims that Musk is owed damages for what he terms "wrongful gains" earned by the company.
According to the filing, Musk contributed nearly 60% of OpenAI's initial seed funding and provided valuable advice, recruitment services, and introductions to key business contacts. He even put in $38 million himself during the startup years. Now, financial economist C. Paul Wazzan is estimating that OpenAI earned between $65.5 billion and $109.43 billion in excessive profits, while Microsoft reaped an estimated $13.3 billion to $25.06 billion.
The dispute dates back to March 2024 when Musk first filed a lawsuit against OpenAI, claiming the company had breached its non-profit status. He later added Microsoft as a defendant, seeking to block efforts by OpenAI to restructure its corporate setup. The case has taken another turn with Musk now pursuing an even larger payout.
Musk's claims are not limited to this lawsuit; he is also accusing OpenAI and Apple of monopolistic practices that unfairly restrict xAI from competing in the App Store. With these claims, Musk is seeking a substantial share of OpenAI's current valuation of $500 billion. The exact amount is unclear, but it has sent shockwaves through the tech industry, highlighting the intense battle for control among AI giants.