Elon Musk is demanding up to $134 billion in damages from OpenAI and Microsoft, accusing them of defrauding him and violating the AI startup’s original nonprofit mission. The staggering figure was revealed in a Friday court filing, marking a dramatic escalation in Musk’s legal war against the company he co-founded in 2015.
The filing comes just days after a federal judge cleared the way for a jury trial in the case, scheduled for late April in Oakland, California. Musk’s legal team argues that OpenAI and Microsoft wrongfully enriched themselves by steering the company toward a for-profit structure, abandoning the nonprofit model that Musk initially supported with $38 million in seed funding.
Musk’s lawyer, Steven Molo, presented economic analysis suggesting Musk is entitled to a share of OpenAI’s current $500 billion valuation. Drawing comparisons to early-stage startup investments, Molo claimed the alleged breach resulted in profits for OpenAI and Microsoft that far outstrip Musk’s original investment—justifying the massive damages demand.
OpenAI and Microsoft have rejected the claims, disputing both the valuation calculations and the legal basis for Musk’s argument. OpenAI labeled the lawsuit part of an ongoing “harassment campaign” and insisted that the restructuring plan—which includes Microsoft’s 27 percent stake—preserves nonprofit oversight of for-profit operations.
The core of Musk’s lawsuit centers on the 2023 restructuring that granted Microsoft a major ownership stake in OpenAI’s commercial arm. Musk alleges this deal betrays the company’s founding principles, transforming it into a profit-driven enterprise with deep ties to Big Tech, contrary to its original mission to develop AI safely and openly.
Musk left OpenAI’s board in 2018 and launched his own AI venture in 2023. He filed suit the following year, claiming OpenAI’s pivot violated the company’s founding agreement and unfairly excluded him from its massive financial gains.
As the trial approaches, both sides appear entrenched. Musk’s team has signaled it will seek punitive damages and possibly an injunction, while OpenAI and Microsoft are preparing to defend the legality and structure of their partnership.
