Elon Musk demands $79-134 billion from OpenAI, Microsoft over alleged fraud
text_fields
New Delhi: Tesla CEO Elon Musk has escalated his legal battle against OpenAI and Microsoft, seeking $79 billion to $134 billion in damages from a US federal court for allegedly defrauding him by abandoning OpenAI's nonprofit roots in favor of a lucrative Microsoft partnership.
The demand, filed by Musk's lawyers a day after a judge rejected OpenAI and Microsoft's push to avoid a late April jury trial in Oakland, California, bases its figure on Musk's $38 million seed funding in 2015, now claiming entitlement to a slice of OpenAI's $500 billion valuation through "wrongful gains" amplified far beyond his initial investment.
Court documents attribute $65.5-109.43 billion in profits to OpenAI and $13.3-25.06 billion to Microsoft from Musk's early financial, technical, and advisory contributions, which both companies deny. Musk exited OpenAI's board in 2018, launched xAI in 2023, and sued in 2024 over co-founder Sam Altman's shift to a for-profit model.
OpenAI dismissed the suit as "baseless harassment," vowing to prove it at trial and calling the latest demand part of Musk's ongoing campaign. Separately, Musk's xAI is suing Apple and OpenAI over ChatGPT's integration into Siri and Apple Intelligence, alleging App Store practices harm rivals like Grok, a claim that survived early dismissal efforts.
(Inputs from IANS)