Elon Musk Demands Up to $134 Billion in Lawsuit Against OpenAI and Microsoft
Elon Musk is seeking between $79 billion and $134 billion in damages from OpenAI and Microsoft, alleging that the artificial intelligence company defrauded him by abandoning its original nonprofit mission.
The demand was disclosed in court filings submitted on Friday, following a US federal judge’s decision to allow the case to proceed to a jury trial in late April in Oakland, California.
The legal battle centres on OpenAI’s corporate restructuring, its multibillion-dollar partnership with Microsoft, and Musk’s role as an early co-founder and financial backer.
Dispute Tied to OpenAI’s Valuation and Structural Shift
Musk’s legal team argues that OpenAI’s current estimated valuation of $500 billion reflects gains improperly generated after the company shifted away from the nonprofit principles under which it was founded in 2015.
Musk contributed approximately $38 million in seed funding to OpenAI before resigning from its board in 2018. His lawyers claim that the transformation of OpenAI into a capped-profit and commercially driven entity breached the understanding under which Musk provided financial and strategic support.
How the Damages Were Calculated
In the filing, Musk’s attorney, Steven Molo, said the damages estimate was based on analysis by financial economist C. Paul Wazzan, who is serving as an expert witness in the case.
According to Wazzan’s assessment:
- OpenAI’s alleged wrongful gains range from $65.50 billion to $109.43 billion
- Microsoft’s alleged gains range from $13.30 billion to $25.06 billion
The calculations account not only for Musk’s financial contributions but also for non-monetary inputs, including technical guidance, strategic insight, and early business advice.
Molo compared his position to that of a founding-stage startup investor whose early involvement later yields exponential returns, arguing that OpenAI and Microsoft benefited far beyond Musk’s original investment.
OpenAI Rejects Claims, Calls Lawsuit Baseless
Both OpenAI and Microsoft have repeatedly denied Musk’s allegations. Responding to the latest filing, OpenAI dismissed the damages claim as unfounded and accused Musk of pursuing a campaign of harassment.
“Mr Musk’s lawsuit continues to be baseless and a part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial,” OpenAI said in a statement.
“This latest unserious demand is aimed solely at furthering this harassment campaign.” Microsoft declined to comment on the new filing.
Trial Expected to Draw Global Attention
OpenAI also warned investors to expect further high-profile claims as the trial approaches, signalling that the dispute could intensify in the coming months.
With one of the world’s most influential technology figures squaring off against a leading AI company and its largest commercial partner, the case is expected to draw significant attention as it heads to court later this year.
