Elon Musk is seeking an astonishing $79 billion to $134 billion in damages from OpenAI and Microsoft, alleging that the AI company misled him by abandoning its nonprofit mission, as reported by Bloomberg. This staggering figure comes from expert witness C. Paul Wazzan, a financial economist with a notable track record of being deposed almost 100 times and testifying in various complex commercial litigation cases.
Wazzan, who focuses on damages calculations and valuations in high-stakes disputes, assessed that Musk is entitled to a significant portion of OpenAI’s $500 billion valuation, based on his $38 million seed donation when he co-founded the startup in 2015. To put it in perspective, this equates to a remarkable 3,500-fold return on Musk’s investment.
Wazzan’s analysis links Musk’s initial financial input with the technical and business contributions he made to OpenAI’s early team, estimating wrongful gains of $65.5 billion to $109.4 billion for OpenAI and $13.3 billion to $25.1 billion for Microsoft, which currently owns 27% of the company.
Musk’s legal team is arguing for compensation akin to that of an early startup investor, who would typically see returns “many orders of magnitude greater” than their original stake. However, the immense scale of the damages being claimed suggests that this legal dispute isn’t solely about the money.
Musk’s net worth stands at about $700 billion, making him the richest person in the world. Recently, Reuters highlighted that his wealth surpasses that of Google co-founder Larry Page—who holds the title of the second-richest individual—by an eye-watering $500 billion, according to Forbes’ billionaires list. In November, Tesla shareholders approved a massive $1 trillion pay package for Musk, marking the largest corporate pay package ever.
Given this backdrop, even a potential $134 billion payout from OpenAI would merely be a small increment to Musk’s wealth. This likely reinforces OpenAI’s view of the lawsuit as part of an “ongoing pattern of harassment,” rather than a legitimate financial issue. Reports indicate that OpenAI sent a letter on Thursday to its investors and business partners, cautioning that Musk will likely make “deliberately outlandish, attention-grabbing claims” as his lawsuit against the company approaches its trial date in April. The case is set to be heard in Oakland, California, roughly 15 miles east of San Francisco.
