Elon Musk wants a jaw-dropping $79 billion to $134 billion in damages from OpenAI and Microsoft, claiming the AI company defrauded him by jettisoning its nonprofit mission, Bloomberg first reported. The figure comes from expert witness C. Paul Wazzan, a financial economist whose bio says he has been deposed nearly 100 times and testified at trial more than a dozen times in complex commercial litigation cases.
Wazzan, who specializes in valuation and damages calculations in high-stakes disputes, determined that Musk is entitled to a hefty portion of OpenAI’s current $500 billion valuation based on his $38 million seed donation when he co-founded the startup in 2015. (If you’re wondering, that would mean a 3,500-fold return on Musk’s investment.)
Wazzan’s analysis combines Musk’s initial financial contributions with the technical know-how and business contributions he offered to OpenAI’s early team, calculating wrongful gains of $65.5 billion to $109.4 billion for OpenAI and $13.3 billion to $25.1 billion for Microsoft, which today owns a 27% chunk of the company.
Musk’s legal team argues he should be compensated as an early startup investor who sees returns “many orders of magnitude greater” than his initial investment. But the sheer scale of the damages demand underscores that this legal battle isn’t really about the money.
Musk’s personal fortune currently hovers around $700 billion, making him by far the world’s richest person. As Reuters recently noted, his wealth now exceeds that of Google co-founder Larry Page, the world’s second-richest person, by a stunning $500 billion, according to Forbes’ billionaires list. In November, Tesla shareholders separately approved a $1 trillion pay package for Musk, the largest corporate pay package in history.
Against this backdrop, even a $134 billion payout from OpenAI would represent a relatively modest addition to Musk’s wealth, likely reinforcing for those at OpenAI their characterization of the lawsuit as part of an “ongoing pattern of harassment” rather than a legitimate financial grievance. OpenAI already reportedly sent a letter Thursday to investors and others of its business partners, warning that Musk will make “deliberately outlandish, attention-grabbing claims” as his lawsuit against the company heads to trial in April. The case will be heard in Oakland, California, about 15 miles east of San Francisco.
Source: techcrunch.com
