The persistent rivalry between Elon Musk and OpenAI is coming into sharper focus regarding its financial dimensions. A court submission in the ongoing litigation, which alleges that the prominent AI entity has deviated from its original nonprofit mission, as detailed initially by Bloomberg, asserts that Musk deserves compensation ranging from $79 billion to $134 billion for the undue benefits accrued by OpenAI and Microsoft.
The submission argues that Musk merits a slice of OpenAI's present $500 billion assessment, stemming from his $38 million initial investment in the AI venture's formative period. This contribution accounted for approximately 60% of the organization's early funding, and Musk further supported it by aiding in the hiring of vital personnel, facilitating connections to potential partners, and sharing insights on business development, per the document. These valuation projections originate from the work of C. Paul Wazzan, a financial economist acting as Musk's specialist witness. Wazzan's evaluation shows OpenAI realizing illicit profits of $65.5 billion to $109.43 billion, alongside Microsoft's gains of $13.3 billion to $25.06 billion.
This court case pitting Elon Musk against OpenAI originated in March 2024, when the head of xAI launched proceedings asserting that the AI firm had contravened its nonprofit principles. Musk subsequently brought Microsoft into the fray as a co-respondent and attempted to secure a restraining order following OpenAI's disclosure of plans to alter its business framework. Separately from this action, Musk has targeted OpenAI in yet another proceeding, alleging that it and Apple engage in anticompetitive tactics blocking xAI's equitable access to the App Store.