Elon Musk Aims to Challenge OpenAI’s $500 Billion Valuation with Major Damages Lawsuit Ahead of Trial

Elon Musk is pursuing a lawsuit against OpenAI and Microsoft, seeking damages between $79 billion and $134 billion. This landmark case arises as Musk claims a substantial share of OpenAI’s $500 billion valuation, based on an economic analysis by Paul Wazzan. Musk, a co-founder of OpenAI with $38 million in seed funding, alleges that his contributions were pivotal in the company’s early success. His lawsuit challenges OpenAI’s shift from a nonprofit to a profit-focused entity, arguing it has strayed from its mission of safe, open AI development. OpenAI has countered, labeling Musk’s claims as outlandish and part of a harassment pattern. As the trial approaches in April 2024, the case not only scrutinizes OpenAI’s valuation but could also set precedents for the relationship between nonprofit origins and commercial aims in the AI sector, with significant implications for investors and corporate governance.

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