© Getty Images Both companies challenged Musk's claims for damages in a separate filing.
The conflict among erstwhile partners has escalated to a fever pitch. The American billionaire, Elon Musk, has ultimately revealed the extent of his financial requests from his prior associates: he seeks as much as $134 billion from OpenAI and Microsoft, asserting his right to “illegitimately acquired profits” they amassed due to his initial backing of the artificial intelligence enterprise. This information emerges from a court document submitted the previous day, according to Reuters.
OpenAI allegedly garnered between $65.5 billion and $109.4 billion due to the tycoon’s investments during his tenure as a co-founder of OpenAI starting in 2015, while Microsoft obtained between $13.3 billion and $25.1 billion, Musk contended in a federal court submission. The legal action from
OpenAI labeled the legal challenge as “groundless” and part of a “campaign of harassment” orchestrated by Musk. A legal representative for Microsoft conveyed that there was no indication the company “aided or encouraged” OpenAI. Both entities have contested Musk’s demand for recompense through a reciprocal legal declaration.
Musk, who departed OpenAI in 2018 and presently leads xAI along with its competing chatbot, Grok, alleges that OpenAI, the operator of ChatGPT, contravened its fundamental purpose during its publicized shift to a for-profit structure.
Musk’s deposition specifies his contribution of approximately $38 million, constituting 60% of OpenAI’s preliminary funds, as well as his assistance in employee acquisition, connecting the creators with vital contacts, and lending credibility to the venture during its nascent stages.
“In a similar manner to how a seed investor in a burgeoning firm can garner returns that exceed the initial investment manifold, the unduly obtained gains accrued by OpenAI and Microsoft — which Mr. Musk now has the prerogative to retrieve — dwarf Mr. Musk’s original contributions,” Musk contends.
Musk may pursue exemplary damages and other punitive measures, including a potential restraining order, should a jury determine either enterprise to be liable, the deposition articulated, without defining the specific form such a restraining order might assume.
In their own submission, OpenAI and Microsoft implored the judge to restrict the evidence Musk’s expert could furnish to the jury, maintaining that his analysis ought to be omitted due to its “fictitious,” “unverifiable,” and “unprecedented” nature, and its pursuit of an “unconvincing” transfer of billions from a nonprofit to a former benefactor-turned-competitor. The corporations also challenged Musk’s damage computations more broadly, asserting that the expert’s methodology was unreliable and had the potential to mislead jurors.
The matter will be adjudicated by a jury, despite initial plans for a traditional trial, with the trial anticipated to commence in April. It had been previously disclosed that the case would be addressed in March, but unforeseen circumstances compelled the judges to defer the dates.
This marks the second time Elon Musk has filed suit against OpenAI. The initial lawsuit from Musk was initiated in March of 2024. As per Musk’s accusations at that juncture, the startup’s leadership initially enlisted him to fund a charitable entity developing AI “for the betterment of humanity,” subsequently prioritizing profit generation. Musk later incorporated Microsoft as a co-defendant in his legal action.