Elon Musk is pursuing damages between $79 billion and $134 billion in a lawsuit against OpenAI and Microsoft, alleging fraud due to the company’s shift from a nonprofit to a for-profit model. Musk claims that his significant initial investment of $38 million entitles him to a substantial share of OpenAI’s current valuation, estimated at $500 billion. The lawsuit highlights internal discrepancies among founders, where Musk contributed far more than others, and accuses them of converting the organization into a profit-driven scheme post-Musk’s departure. OpenAI, in response, challenges Musk’s assertions, arguing he agreed to the for-profit structure and attempted to merge OpenAI with Tesla for personal gain. Their defense includes accusations of Musk leveraging his position for his new AI venture, xAI. The case centers on whether OpenAI betrayed its founding principles, sparking debate on ethical responsibilities in AI development and corporate governance.
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