According to reports from Bloomberg and Reuters on the 17th, US billionaire Elon Musk is demanding that OpenAI and Microsoft pay him compensation totaling between $79 billion and $134 billion. Musk alleges that OpenAI committed fraud by abandoning its original non-profit mission and instead partnering with Microsoft. Both OpenAI and Microsoft have subsequently issued responses.
Bloomberg reported that Musk's lawyers detailed this compensation request in court documents filed on the 16th. The filing cites estimates from financial economist and expert witness Paul Vazan, stating that Musk, who donated $38 million in seed funding when he helped found OpenAI in 2015, was defrauded and is therefore entitled to a significant portion of OpenAI's current $500 billion valuation.
The court documents show that expert witness Vazan considered both Musk's financial and non-monetary contributions to OpenAI when calculating the compensation amount, including the technical and business advice he provided. The filing also mentions that Musk plans to seek punitive damages.
Bloomberg noted that Musk left the OpenAI board in 2018, founded his own artificial intelligence company in 2023, and initiated legal proceedings in 2024 over OpenAI CEO Sam Altman's plan to convert the company into a for-profit entity. Both OpenAI and Microsoft have denied Musk's allegations.
"Mr. Musk's claims remain without merit and are part of a pattern of ongoing harassment. We look forward to proving this when the case is heard," OpenAI said in a statement. "This latest unsubstantiated claim serves only to prolong this campaign of harassment."
OpenAI had previously warned investors to expect Musk to make sensational claims as the case moves toward trial.
A lawyer for Microsoft stated that there is no evidence to suggest that Microsoft "aided and abetted" OpenAI.
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