Elon Musk is suing OpenAI and Microsoft for up to $134 billion, claiming they "illegally profited" from his previous support for the artificial intelligence organization, a court document shows.
OpenAI has allegedly received between $65,5 billion and $109,4 billion from Musk since 2015, when he was one of the founders of the then-nonprofit organization, and Microsoft between $13,3 billion and $25,1 billion, according to the billionaire's lawsuit against the two companies.
OpenAI called the lawsuit "baseless" and part of Musk's campaign of "harassment." A Microsoft lawyer said there was no evidence that the company "aided and abetted" OpenAI. Microsoft first invested in the startup in 2019. The two companies disputed Musk's claim for damages in a separate court filing, Hina reports.
Musk left OpenAI in 2018 and now runs xAI, a company that has a competing chatbot, Grok. He 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 ruled that the trial would proceed to a jury trial, set to begin in April. Musk says he contributed $38 million to OpenAI, or 60 percent of its initial funding, which recruited employees, connected the founders to key contacts, and gave the project credibility.
"Just as an early investor in a startup can realize gains far in excess of their initial investment, the ill-gotten gains made by OpenAI and Microsoft, which Mr. Musk is now entitled to recover, far exceed his initial contributions," Musk's team claims.
His lawsuit says the potential damages were calculated by financial specialist Paul Vazan. Musk could also seek other sanctions, such as a possible injunction, although the filing does not specify what form those might take.
OpenAI and Microsoft are asking the judge to limit what Musk's expert can present to jurors and that his analysis should be dismissed as "fabricated," "unverifiable," and "unprecedented." It seeks an "unbelievable" transfer of billions from the nonprofit to its former donor, who has since become a competitor, the two companies say.
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