Elon Musk Amends OpenAI Lawsuit, Seeks Damages for Nonprofit Arm
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Elon Musk Amends OpenAI Lawsuit, Seeks Damages for Nonprofit Arm

Summary

Elon Musk has revised his lawsuit against OpenAI, requesting that any awarded damages be allocated to the company's nonprofit division.

Elon Musk has amended his lawsuit against OpenAI, now requesting that any damages awarded be allocated to the company's nonprofit division.

Musk initiated legal action against OpenAI in 2024, alleging that the organization had deviated from its original nonprofit mission by transitioning to a for-profit model. He contends that this shift, particularly the partnership with Microsoft, has transformed OpenAI into a "closed-source de facto subsidiary" of the tech giant.

In the amended complaint, Musk is seeking damages ranging from $79 billion to $134 billion, based on OpenAI's current valuation. He argues that, as a co-founder and early donor, he or the nonprofit arm of OpenAI is entitled to a portion of the company's valuation.

Additionally, Musk is calling for the removal of OpenAI CEO Sam Altman from the nonprofit's board of directors if the lawsuit is successful.

OpenAI has previously denied Musk's allegations, stating that there was no "founding agreement" regarding the organization's nonprofit status and that Musk himself supported a for-profit structure.

The case is set to go to trial in March, with a U.S. judge indicating that there is sufficient evidence to support Musk's claims.

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