Judge Allows Elon Musk's $134 Billion Lawsuit Against OpenAI and Microsoft to Proceed to Trial

A California judge has allowed Elon Musk's lawsuit seeking $134 billion in damages from OpenAI and Microsoft to proceed to trial, despite expressing skepticism about the valuation methods used.

During a pre-trial hearing, U.S. District Judge Yvonne Gonzalez Rogers remarked that Musk's expert witness appeared to be "pulling these numbers out of the air." However, she declined to exclude the testimony, stating that she was not prepared to make that decision based on a brief motion and would allow the jury to hear the evidence.

Musk, who co-founded OpenAI in 2015, alleges that the organization and its CEO, Sam Altman, defrauded him by shifting from its original non-profit mission to a for-profit model, after he had made significant contributions. The lawsuit claims that Musk's early donation of $38 million, along with his non-monetary contributions, accounted for 50-75% of the value of OpenAI's non-profit arm, which owns just over a quarter of the for-profit business, recently valued at $730 billion.

OpenAI and Microsoft have sought to dismiss portions of the expert's testimony, arguing that the calculations lack a solid foundation. Despite the judge's reservations about the valuation methods, the trial is scheduled to begin on April 28, allowing Musk's claims to be presented to a jury.