Musk seeks up to $134B from OpenAI, Microsoft in fraud lawsuit (www.business-standard.com)

Elon Musk has filed a fraud lawsuit against OpenAI and Microsoft, seeking damages between $79 billion and $134 billion. Musk claims he was defrauded when OpenAI shifted from its nonprofit roots to a partnership with Microsoft, heavily benefitting from his original $38 million investment made during OpenAI’s founding in 2015. The request for such a staggering amount highlights an expert economist's assessment of both financial and non-monetary contributions Musk provided to the organization, suggesting that OpenAI's current valuation of $500 billion includes wrongful gains he is entitled to recover. This lawsuit is significant for the AI/ML community as it raises questions about the governance and ethical considerations of for-profit AI entities, especially those that began as nonprofit organizations. It also marks a continuation of Musk's contentious relationship with OpenAI since he left its board in 2018 and initiated his AI venture in 2023. OpenAI has publicly dismissed Musk's claims as unfounded, characterizing the lawsuit as part of a larger pattern of harassment and a strategic maneuver to undermine a competitor. As the case approaches trial in April, it is expected to generate considerable attention and scrutiny regarding the future landscape of AI development and investment narratives.