"Citing calculations by a financial economist expert witness, C. Paul Wazzan, the filing says Musk is entitled to a chunk of OpenAI's current $500 billion valuation after he was defrauded of the $38 million in seed money he donated to OpenAI when he helped found the startup in 2015."
"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 lawyer Steven Molo wrote. Musk left OpenAI's board in 2018, launched his own artificial intelligence company in 2023"
"Mr Musk's lawsuit continues to be baseless and a part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial, OpenAI said in a statement. This latest unserious demand is aimed solely at furthering this harassment campaign. Altman has denounced Musk's lawsuit challenging OpenAI's restructuring as a weaponization of the legal system to slow down a competitor."
Elon Musk is seeking $79 billion to $134 billion in damages, alleging OpenAI and Microsoft defrauded him by abandoning OpenAI's nonprofit roots after his $38 million seed donation. A court filing cites financial economist C. Paul Wazzan's calculations tying Musk's claim to a portion of OpenAI's roughly $500 billion valuation. OpenAI and Microsoft dispute those calculations and call the lawsuit baseless and harassing. A federal judge denied a final motion to avoid a jury trial scheduled for late April in Oakland, California. Musk left OpenAI's board in 2018 and later launched his own AI company in 2023.
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