Elon Musk is seeking between $79 billion and $134 billion in damages from OpenAI and Microsoft, alleging that OpenAI defrauded him by abandoning its original nonprofit mission. Bloomberg first reported the damages claim.
The estimate is provided by expert witness C. Paul Wazzan, a financial economist specializing in valuation and damages calculations in complex commercial litigation. According to his professional background, Wazzan has been deposed nearly 100 times and has testified at trial more than a dozen times.
Damages Tied to OpenAI’s Valuation
Wazzan’s analysis argues that Musk is entitled to a significant share of OpenAI’s current valuation, estimated at $500 billion. The calculation is based on Musk’s $38 million seed contribution when he co-founded the organization in 2015, along with his early technical input and business involvement.
Under this framework, Musk’s investment would translate into a return of roughly 3,500 times his original contribution. Wazzan estimates OpenAI’s alleged wrongful gains at between $65.5 billion and $109.4 billion. He also attributes between $13.3 billion and $25.1 billion in gains to Microsoft, which currently owns a 27% stake in OpenAI.
Legal Arguments
Musk’s legal team maintains that he should be compensated like an early-stage startup investor who later sees returns “many orders of magnitude greater” than the initial investment. However, the scale of the damages request highlights that the dispute extends beyond financial compensation.
Musk’s personal net worth is estimated at around $700 billion, making him the world’s richest individual. Reuters recently reported that Musk’s wealth exceeds that of Larry Page by about $500 billion, based on Forbes’ rankings. In November, Tesla shareholders approved a separate $1 trillion compensation package for Musk, the largest corporate pay package on record.
OpenAI’s Response
Against that backdrop, even a potential $134 billion payout would add only marginally to Musk’s wealth. OpenAI has characterized the lawsuit as part of an “ongoing pattern of harassment” rather than a legitimate financial dispute.
The company reportedly sent a letter to investors and business partners on Thursday warning that Musk would make “deliberately outlandish, attention-grabbing claims” as the case moves toward trial. The lawsuit is scheduled to be heard in April in Oakland, California, about 15 miles east of San Francisco.
What is behind this conflict by the way should people know and the ultimate beneficiary.