Elon Musk Seeks $134 Billion from OpenAI, Microsoft in Lawsuit

Elon Musk Seeks $134 Billion from OpenAI, Microsoft in Lawsuit

Elon Musk, co-founder of OpenAI, has escalated his legal battle against the company and Microsoft by demanding between $79 billion and $134 billion in damages. Musk alleges that they defrauded him by shifting OpenAI's mission from nonprofit to for-profit after his initial $38 million donation in 2015 (Business Insider).

Court Filing Details

The court document, filed on January 16, 2026, ahead of a jury trial scheduled for late April in Oakland, California, includes calculations by financial economist C. Paul Wazzan. Wazzan argues that Musk deserves a share of OpenAI's estimated $500 billion valuation as compensation for "wrongful gains" (TradeAlgo).

Musk's attorney, Steven Molo, compared Musk's position to that of an early startup investor entitled to significant returns. The damages claim exceeds Musk's initial contribution due to OpenAI's shift to a for-profit model supported by Microsoft (Times of India).

OpenAI's Response

OpenAI responded with a blog post titled "The truth Elon left out," accusing Musk of misrepresentation and harassment to benefit his rival AI venture, xAI (OpenAI). They claim Musk agreed to a for-profit structure in 2017 but negotiations failed when OpenAI rejected his demands for full control.

OpenAI dismissed the lawsuit as Musk's "fourth attempt" at these claims, stating that the case is worth at most Musk's $38 million donation (Times of India).

Unsealed Evidence

Recent unsealed evidence, including 2025 depositions, reveals early tensions within OpenAI. Highlights include Ilya Sutskever holding $4 billion in vested shares and Musk's departure in 2018 over commercialization concerns (Sources News).

Historical Context

Musk co-founded OpenAI in 2015 to counter profit-driven AI risks. He left in 2018, predicting failure without massive funding, which OpenAI later secured from Microsoft. OpenAI's transition to a capped-profit entity enabled breakthroughs like GPT-4 and o1 models (TradeAlgo).

Broader Implications

This legal clash could reshape AI governance, testing nonprofit-to-profit transitions. A Musk victory might force equity redistribution, while an OpenAI win could reinforce operational flexibility. Legal analysts question the feasibility of Musk's $134 billion claim, but the jury will ultimately decide (Sources News).

The trial promises to be a pivotal moment for AI's future, with significant implications for mission versus market realities.