Elon Musk is pursuing a staggering $134 billion in damages from OpenAI and Microsoft, alleging that the AI organization misled him by abandoning its original nonprofit vision, as reported by Bloomberg. This eye-popping figure is based on insights from financial analyst C. Paul Wazzan, known for his extensive experience in evaluating damages in complex commercial disputes.
Wazzan asserts that Musk is entitled to a significant share of OpenAI’s estimated $500 billion valuation, stemming from his initial investment of $38 million when he co-founded the company in 2015. This could translate into a remarkable 3,500-fold return on Musk’s investment.
The financial expert’s assessment combines Musk’s early contributions, both monetary and technical, to OpenAI, estimating wrongful profits for OpenAI between $65.5 billion and $109.4 billion, alongside $13.3 billion to $25.1 billion for Microsoft.
Musk’s legal representatives maintain that he deserves compensation akin to that of a pioneering investor, who typically expects returns “many orders of magnitude greater” than the initial stake. However, the enormity of his damage claims suggests that this lawsuit may extend beyond mere financial considerations.
Currently valued at approximately $700 billion, Musk holds the title of the world’s wealthiest individual, significantly surpassing Google co-founder Larry Page by around $500 billion, according to Forbes. Notably, Tesla’s shareholders recently approved an unprecedented $1 trillion compensation package for Musk, marking it as the largest in corporate history.
Within this context, even a $134 billion settlement from OpenAI would represent a relatively modest increase to Musk’s substantial wealth. This may lead OpenAI to view the lawsuit as part of an “ongoing pattern of harassment” rather than a genuine financial dispute. The trial is set to commence in late April in Oakland, California, approximately 15 miles from San Francisco.
