Elon Musk demanding $134 billion from OpenAI and Microsoft: Here's why

As the co-founder of the world's most popular AI startup, OpenAI, which developed ChatGPT, Elon Musk is pursuing up to $134 billion from OpenAI and Microsoft in “wrongful gains”.

Why is Elon Musk demanding $134 billion from OpenAI and Microsoft?

Musk validates his entitlement to the hefty sum of money, citing that the “gains” stemmed from his early support of the AI startup, according to a court filing submitted on Friday.

He alleged that OpenAI made between $65.5 billion and $109.4 billion from his contributions as a co-founder in 2015, while Microsoft benefited by $13.3 billion to $25.1 billion, Reuters reported.

Musk's latest legal blow comes ahead of his trial against both companies.

OpenAI has dismissed the lawsuit as “baseless,” describing it as part of a “harassment” campaign by Musk.

Evidence of OpenAI and Microsoft's 'wrongful gains'

A lawyer representing Microsoft said there is no evidence that the company “aided and abetted” OpenAI in any wrongdoing.

Having left OpenAI in 2018, Musk is now running his own AI startup xAI, which developed AI competitor chatbot Grok, to rival ChatGPT.

Musk contended that OpenAI has strayed from its founding mission, particularly following its transition to a for-profit status.

He also claims to have contributed approximately $38 million, accounting for 60% of OpenAI’s early seed funding, and asserts that he played a crucial role in recruiting staff and bringing credibility to the project.

Musk's lawsuit indicates that his contributions were evaluated by financial economist C. Paul Wazzan.

If the jury finds either company liable, Musk is expected to seek punitive damages and other penalties, although specifics regarding any potential injunction remain unspecified.