Musk Says OpenAI Settlement Will All Go to Charity, $10.9B Claim Set for April Trial

According to 1M AI News monitoring, Elon Musk posted on X stating that in the lawsuit against OpenAI, "any damages awarded will be donated to charity, and he will not profit in any way."

The lawsuit was filed by Musk in 2024, alleging that OpenAI CEO Sam Altman and partner Microsoft had violated OpenAI's original non-profit mission and shifted towards a for-profit model for business gains. Musk, a co-founder of OpenAI who participated in its establishment in 2015 and invested around $38 million, left in 2018 and now leads the AI company xAI.

On March 13, presiding Judge Yvonne Gonzalez Rogers ruled at a pretrial conference in Oakland, California, that Musk's side could present expert witness and economic consulting firm Berkeley Research Group economist C. Paul Wazzan's damages report. The report estimated that if the jury finds OpenAI in breach, OpenAI should pay up to $109 billion. Wazzan also calculated that Microsoft should pay $25 billion, but the judge has not yet ruled on this. The judge also tentatively ruled that Musk cannot seek punitive damages.

However, the judge noted that even if Musk wins, the actual damages may be much lower than $109 billion: some claims may be time-barred, and the jury may find that Musk is only partially responsible for OpenAI's success. The case is set to go to trial with a jury on April 28. OpenAI and Microsoft deny all allegations.