Elon Musk accuses OpenAI, Microsoft of betrayal, seeks up to USD 134 billion for THIS reason, what’s the whole matter

The entrepreneur and founder of SpaceX, Elon Musk, is asking for damages ranging between USD 79 billion and USD 134 billion from the other two popular companies, OpenAI and Microsoft. He alleged that the maker of ChatGPT had abandoned its non-profit original mission. He also said that the company had misled him by forging a commercial partnership with Microsoft. According to the report of Bloomberg, the demand was presented in a court filing that was submitted on Friday. This happened shortly after a federal judge of the United States rejected the attempts of OpenAI and Microsoft to avoid a jury trial. The case is now most likely to get a trial in April.

Elon Musk’s claims

The filing is dependent on the assessment of the financial economist C. Paul Wazzan. The analysis mentions that Elon Musk is allowed a portion of OpenAI’s approximate USD 500 billion valuation. Elon Musk co-founded OpenAI in the year 2015.

He had contributed almost USD 38 million during the initial years. However, the claims made in the filings mention that the damage exceeds the amount. They also cite the contributions of Elon Musk, which are non-financial. These include his technical expertise, strategic input, and guidance on business. Based on these filings, Paul Wazzan alleged that the two companies, OpenAI and Microsoft, have received wrongful gains of almost USD 65.50 to USD 109.43 and USD 13.30 billion to USD 25.06 billion, respectively.

Elon Musk’s lawyer

The lawyer of Elon Musk, Steven Molo, linked the situation to the investment in a startup. He argued that the initial supporters are designated to disproportionate runs when a company becomes successful.

Elon Musk stepped down from the board of OpenAI in the year 2018. He later went ahead to launch his own platform of artificial intelligence, named xAI, which makes the Grok chatbot.

Reaction of OpenAI

The company OpenAI has disregarded the claims of the entrepreneur Elon Musk and said they’re ‘baseless.’ He highlighted that the case is a part of a broader pattern of harassment. In addition, it said that the company looks forward to addressing all the allegations at the court trial.

Elon Musk has repeatedly accused the platform OpenAI of its transition into a ‘closed-source, maximum profit company’ under the influence of Microsoft. It has also criticised the CEO of OpenAI, Sam Altman, publicly. In turn, OpenAI has said that Elon Musk’s exit came after it failed to secure absolute control over the company.