Musk seeks $134 billion from OpenAI and Microsoft

OpenAI called it “baseless” and part of Musk’s “bullying” campaign. Microsoft’s lawyer stated that there is no evidence that the company “aided and abetted” OpenAI. Microsoft invested in the startup for the first time in 2019. The two companies contested Musk’s claim for damages in separate court filings.

Musk left OpenAI in 2018, and today runs the company xAI, which has a competing ‘chatbot’ Grok. It now claims that OpenAI violated its founding mission by restructuring from a non-profit organization to a business entity.

A judge in Oakland, California earlier this month ordered a jury trial to begin in April.

Musk claims that he contributed $38 million to OpenAI, or 60 percent of its initial funding, recruited employees, connected the founders with key contacts, and the project gained credibility.

– Just like when an early investor in a startup company can make profits much more than the initial investment, so the illegal profits that OpenAI and Microsoft gained – and which Mr. Musk now has the right to return – are much higher than his initial contributions – claims Musk’s team.

His lawsuit states that the potential compensation was calculated by financial expert C. Paul Wazzan. Musk could also seek other sanctions, such as a possible ban, although the filing does not specify what form it could take.

In their response, OpenAI and Microsoft ask the judge to limit what Musk’s expert can present to jurors and that his analysis should be dismissed as “contrived,” “unverifiable” and “unprecedented.” It seeks an “unbelievable” transfer of billions from a non-profit organization to its former donor who has since become a competitor, the two companies claim.