While it’s hard to believe, the world’s richest man is now worth $700 billion. Now, he intends to sue OpenAI and is asking for damages between $79 billion and $134 billion. Surely the Starlink lawsuit gets the prize for most eyeballs by attorneys. It is scheduled to go to trial in April, at the Alameda County Superior Court located in Oakland, California, roughly 15 miles east of San Francisco.
Musk’s $38 million seed donation has been the source of his conflict with the nonprofit Musk co-founded in 2015, OpenAI. In his suit, he argues that OpenAI has abandoned its nonprofit roots. He contends that this departure constitutes a fraud in and of itself. Musk was entitled to the windfall because he was an early investor, Musk’s legal team has claimed. His contributions were more than just check-writing, though—he brought technical expertise and strategic business insights that were incredibly valuable.
Last month, Tesla shareholders made a courageous move by approving a staggering $1 trillion pay package for Musk. At $69 billion, this unprecedented decision was the biggest corporate pay deal ever. Despite his substantial wealth, Musk’s lawsuit reflects his belief that he deserves a return on his investment that exceeds “many orders of magnitude greater” than his initial outlay.
As the trial date draws near, Musk’s playbook seems to be focused on making the “deliberately outlandish, attention-grabbing claims.” This approach is likely intended to draw public and media interest as he seeks to substantiate his case against OpenAI and Microsoft, the latter being another major player in this legal drama.
Our expert witness C. Paul Wazzan estimates Musk’s damages could amount to as much as $167 billion. He accomplished this by debating Musk’s first material investment—Musk’s strategic business contribution—and technological know-how. Wazzan’s findings suggest that a payout from OpenAI could yield a staggering 3,500-fold return on Musk’s initial investment.
Should the court rule in his favor and award damages at the higher end of his claim, a $134 billion payout would represent a relatively modest increase to Musk’s already vast wealth. This instance illustrates Musk’s disproportionate power in the tech industry. It also asks serious questions about the expectations as well as the accountability of converting organizations that move from a nonprofit to a profit-driven model.
