TLDR

  • Elon Musk has updated his lawsuit against OpenAI, requesting that any awarded damages be directed to OpenAI’s nonprofit division instead of his personal funds.
  • Musk is pursuing damages exceeding $150 billion from both OpenAI and Microsoft.
  • Musk is calling for the dismissal of Sam Altman from the nonprofit board and Greg Brockman from his officer position.
  • The process of selecting a jury is scheduled to start on April 27 in an Oakland, California federal court.
  • OpenAI dismissed the legal action as “a harassment campaign driven by ego, jealousy and a desire to slow down a competitor”.

(SeaPRwire) –   On Tuesday, Elon Musk submitted an amendment to his legal filing against OpenAI, stipulating that any potential financial awards be transferred to OpenAI’s nonprofit branch rather than his own pockets. Furthermore, he is petitioning the court to oust CEO Sam Altman and President Greg Brockman from their current positions.

M>Musk initiated the legal battle against OpenAI in 2024. He alleges that the company misled him into contributing $38 million by assuring him it would maintain its nonprofit status. Since then, OpenAI has reorganized to become a nonprofit entity that possesses a 26% interest in its for-profit subsidiary.

In 2015, Musk and Altman were among the co-founders of OpenAI. Musk departed from the organization in 2018 following an unsuccessful attempt to merge it with Tesla. Subsequently, in 2023, he established a rival AI firm named xAI, known for creating the Grok chatbot.

Currently, Musk is pursuing damages exceeding $150 billion from both OpenAI and its primary investor, Microsoft. This figure is an increase from the up to $134 billion his legal team sought in a filing made this past January.

Marc Toberoff, Musk’s attorney, stated that his client “is not seeking a single dollar for himself.” Toberoff emphasized that the objective is to restore funds to the public charity from which they were taken and to ensure those responsible are held accountable.

Musk’s Demands to the Court

The legal team representing Musk is requesting the court to compel Altman and Brockman to transfer any equity or financial gains they have obtained to OpenAI’s charitable division. Additionally, they are demanding that OpenAI return to functioning strictly as a genuine nonprofit organization.

“It is a standard remedy to remove the officers and directors of a charity when they fail to uphold or execute the organization’s public mission,” stated Musk’s lawyers in the filing submitted on Tuesday.

OpenAI responded swiftly. In a statement posted on X, the company characterized the lawsuit as “nothing more than a harassment campaign that is driven by ego, jealousy and a desire to slow down a competitor.” Microsoft has chosen not to comment on the matter.

Path to the Trial

The selection of jurors is scheduled to commence on April 27 at a federal court located in Oakland, California.

OpenAI dispatched a letter on Monday to the attorneys general of both California and Delaware. The correspondence alleges that Musk is disseminating false information to tarnish OpenAI’s reputation prior to the trial. Furthermore, OpenAI claims that Musk has been collaborating with Meta CEO Mark Zuckerberg to coordinate actions against the company.

Toberoff dismissed OpenAI’s letter as a “desperate deflection,” asserting that the decision rests with a judge and jury.

With a current valuation of $852 billion, OpenAI is planning to go public later this year. Meanwhile, SpaceX, which finalized the acquisition of xAI in February in a transaction valuing the merged entity at $1.25 trillion, has recently submitted confidential filings to the SEC for a potentially record-breaking initial public offering offering.

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