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We now have some idea of what's at stake in the longstanding feud between Elon Musk and OpenAI. As first reported by Bloomberg, the latest filing, as part of a lawsuit that accuses the AI giant of abandoning its non-profit status, claims that Musk is owed anywhere between $79 billion and $134 billion in damages from the "wrongful gains" of OpenAI and Microsoft.
Musk claimed in the filing that he's entitled to a portion of OpenAI's recent valuation at $500 billion, after contributing $38 million in "seed funding" during the AI company's startup years. Along with providing "roughly 60 percent of the nonprofit's seed funding," Musk offered recruiting of key employees, introductions with business contacts and startup advice, according to the filing. The monetary estimate comes from C. Paul Wazzan, a financial economist who's serving as Musk's expert in the case. According to Wazzan's calculations, OpenAI earned between $65.5 billion and $109.43 billion in wrongful gains, while Microsoft saw between $13.3 billion and $25.06 billion.
The lawsuit between Elon Musk and OpenAI dates back to March 2024, when the xAI CEO first filed a legal action claiming that OpenAI violated its non-profit status. Musk later added Microsoft as
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Loose cannon, always-looking-for-attention Elon Musk has again thrust himself into the public eye, this time by suing OpenAI and CEO Sam Altman for breaching its founding agreement by turning the company away from its non-profit roots and cashing in on the billions of dollars available in the generative AI (genAI) gold rush.
At stake in the suit is Microsoft's $13 billion investment in the company. Musk claims that OpenAI was originally founded to share its wares with the world by open sourcing its technologies, something it abandoned thanks to the relationship with Microsoft.
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AI will play a significant role in enterprise IT in the coming year, and the influence of generative AI will permeate other tech trends on the horizon. Smart robots, a rise in employee unionization, and growing power-availability concerns are among the top predictions for 2024 and beyond from research firm Gartner, which is hosting its annual IT Symposium/Xpo this week.
"This is the first full year with generative AI (GenAI) at the heart of every strategic decision, and every other technology-driven innovation has been pushed out of the spotlight," said Leigh McMullen, distinguished vice president analyst at Gartner. "GenAI has broken the mold and has kept building more excitement."
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