Elon Musk Seeks $134B from OpenAI and Microsoft
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What is the main topic discussed in this episode?
Welcome to the podcast. I'm your host, Jaden Schaefer.
What is Elon Musk's lawsuit against OpenAI and Microsoft about?
Today on the podcast, Elon Musk is trying to get $134 billion from OpenAI and Microsoft in what is called a wrongful gains lawsuit. This is for his early investment in OpenAI as it was a open source, you know, company that was basically a nonprofit, and then it switched to a for profit company. So today on the show, I want to dive into this lawsuit, justifications, everything going into it, as well as we have nine new, I guess, like kind of big points, revelations, you could say, from dire and diary entries, text messages, and late night emails. In the court documents, there's about 100 documents that were just unsealed in this Elon Musk versus Sam Altman lawsuit coming from the co founders of open AI.
So there's a lot of juicy stuff that just came out in this story. And I think a lot of implications for the AI industry overall. So today on the show, I'll try to dive into all of this without making it an article from People Magazine. So I'll try to get you the unbiased business side of this whole drama because I think it has a lot of implications for the AI industry. All right, let's get into it. Before we do, if you want to build tools without knowing how to code, without being a developer, and using AI, I highly recommend you check out AIbox.ai. This is my own startup where you can use a powerful no-code assistant to help you build tools, and you also get access to over 40 different AI models, all the top AI models from Google, OpenAI, Anthropic, 11Labs,
all in one place, audio, image, text generation. So you can try all of the different, all the best models against each other side by side in the same chat, like ChatGPD, but just with 40 different companies. And it's 20 bucks a month. So if you want to get access to that, go check out AIbox.ai. I'll leave a link to it in the description. All right, so Elon Musk, he's just filed the lawsuit, which is seeking between $79 billion and $134 billion in damages. This is an astronomical amount of money from OpenAI, but also Microsoft. He also tied Microsoft to this because they were the early investor in OpenAI, and they kind of had, I guess, some knowledge, and they were pushing OpenAI to be a for-profit instead of an open-source company.
nonprofit company. So his allegation is that OpenAI violated their original nonprofit mission and that both organizations benefited financially from his early involvement, which I mean, I guess there's like so much beef with OpenAI. I don't want to get into it, but I can sort of see where he's coming from on Microsoft because he did just donate money to OpenAI. And then Microsoft came in and made an investment in OpenAI and took like half the company. So I mean, Microsoft most definitely has, you know, got a lot to gain from his donation. So if you look at all of his court filings, he's essentially arguing that kind of his financial and technical and reputation all contributed to OpenAI's early development.
And to be fair, I think he did do a bunch of work at the beginning and he got on a bunch of the early founders of OpenAI. Like he went, you know, personally and headhunted and recruited them. He also says that he gave about $38 million to the company, which was about 60% of their early seed funding. So, you know, more than 50%, but there was other people involved in this as well. And then he also helped with, you know, all of the staff recruiting, advising on, you know, scaling the business. He gave a lot of credibility to the project when it was really, you know, a new project back in 2015 and 2018. So he's, you know, he's claiming damages and he's saying that these are all based on analysis by financial economist,
See Paul was then who essentially did some calculations on what Elon Musk is calling wrongful gains, which came from his contribution, his 60 percent, his 38 million dollars that he put into the company. So his filing is estimating that OpenAI got about sixty five point five billion and one hundred and nine billion dollars in value from what he did at the beginning.
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