Musk, who co-founded OpenAI in 2015 and later left the organization in 2018, argues that his early contributions played a critical role in the startup’s growth. The filing states that OpenAI earned between $65.5 billion and $109.4 billion from Musk’s contributions, while Microsoft gained $13.3 billion to $25.1 billion through its partnership with the AI company.
Musk alleges that OpenAI abandoned its original mission when it restructured into a for-profit entity, a move he claims was a violation of the organization’s founding principles. OpenAI has described the lawsuit as “baseless” and part of a “harassment” campaign, while Microsoft has denied any wrongdoing, saying there is no evidence it “aided and abetted” OpenAI.
Key Claims and Arguments
According to Musk’s filing, his early involvement included:
- Contributing about $38 million, accounting for 60% of OpenAI’s initial seed funding
- Recruiting staff
- Connecting founders with key contacts
- Lending credibility to the project during its early days
Musk’s legal team argues that, like early investors who earn massive returns, he is entitled to disgorge the companies’ “wrongful gains,” which they say far exceed his initial contribution. The damages calculations were presented by Musk’s expert witness, financial economist C. Paul Wazzan.
The filing also indicates that Musk may pursue punitive damages and other penalties, including a potential injunction, if the jury finds OpenAI or Microsoft liable.
Companies Challenge the Damages Claims
OpenAI and Microsoft filed their own response on Friday, asking the court to limit what Musk’s expert can present to the jury. They argue that the damages analysis is “made up,” “unverifiable,” and “unprecedented”, and that it attempts an unrealistic transfer of billions from a nonprofit to a former donor-turned-competitor.
The companies also challenged the reliability of the damages figures, warning that the expert’s methodology could mislead jurors.
Next Steps
A judge in Oakland, California, recently ruled that the case will proceed to a jury trial, setting the stage for a high-profile legal showdown between one of the world’s most prominent entrepreneurs and two major technology entities.