Elon Musk Seeks Up to $134 Billion in Lawsuit Against OpenAI and Microsoft
Billionaire Elon Musk has filed a legal claim demanding financial compensation ranging from $79 billion to $134 billion from OpenAI and Microsoft, following a lawsuit accusing the AI company of breaching core commitments and transforming from a nonprofit into a for-profit entity in partnership with the software giant.
The claim was submitted after a federal judge denied motions from OpenAI and Microsoft to avoid trial. The case is set to proceed before a jury in California in the coming months. Musk argues that he played a pivotal role in founding OpenAI in 2015, contributing approximately $38 million in seed funding, alongside technical and commercial expertise. He contends that he was defrauded by being excluded from the enormous financial gains resulting from OpenAI’s current valuation, estimated at $500 billion.
According to an economic expert consulted by Musk’s legal team, OpenAI’s profits stemming from its restructuring range between $65 billion and $109 billion, while Microsoft gained an additional $13 billion to $25 billion, forming the basis for Musk’s claim for substantial compensatory—and potentially punitive—damages.
The dispute traces back to Musk’s departure from OpenAI’s board in 2018, followed by the establishment of his own AI company. In 2024, Musk escalated the legal battle, challenging OpenAI’s restructuring and its new for-profit business model. OpenAI denies the allegations, calling the lawsuit legally unfounded, while Microsoft has not issued an official comment. The case continues its judicial path toward a highly anticipated trial.