Elon Musk is seeking an unprecedented $79 billion to $134 billion in damages from OpenAI and its major partner, Microsoft. The lawsuit, initially reported by Bloomberg, alleges that OpenAI defrauded Musk by deviating from its foundational nonprofit mission. This substantial financial claim stems from Musk's role as a co-founder of the AI startup in 2015, where he provided a $38 million seed donation.

The colossal damage figure was determined by C. Paul Wazzan, a seasoned financial economist renowned for his expertise in valuation and damages calculations in high-stakes commercial litigation. Wazzan's analysis not only incorporates Musk's initial financial contributions but also accounts for the significant technical know-how and business contributions he made to OpenAI's nascent team. His calculations pinpoint wrongful gains of $65.5 billion to $109.4 billion for OpenAI itself, alongside an additional $13.3 billion to $25.1 billion for Microsoft, which currently holds a 27% stake in the company. Should Musk's claim be successful based on his initial investment, it would represent an astonishing 3,500-fold return.

Musk's legal team argues for compensation akin to an early startup investor who experiences returns