Elon Musk Pursues Up to $134 Billion in Damage From OpenAI and Microsoft

Elon Musk is seeking massive financial damages from OpenAI Inc. and its longtime partner Microsoft Corp., escalating a high-profile legal battle that could reshape perceptions around ownership, governance, and accountability in the artificial intelligence sector. According to a recent court filing, Musk is asking for compensation ranging from $79 billion to $134 billion, arguing that OpenAI abandoned its original nonprofit mission and misled him by forming a deep commercial partnership with Microsoft.

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The damages request was outlined by Musk’s legal team in a filing submitted Friday, just one day after a federal judge rejected OpenAI and Microsoft’s final attempt to avoid a jury trial. That trial is now scheduled for late April in Oakland, California, setting the stage for one of the most closely watched legal showdowns in the AI industry.

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At the center of Musk’s claim is the argument that he was defrauded out of the long-term value of OpenAI after contributing early funding and strategic support when the organization was founded in 2015. Musk donated roughly $38 million in seed capital to help launch OpenAI as a nonprofit research lab dedicated to developing artificial intelligence for the benefit of humanity.

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According to the filing, Musk’s legal team argues that he is entitled to a portion of OpenAI’s current valuation, which they peg at roughly $500 billion. The calculation is based on an analysis by financial economist C. Paul Wazzan, who was retained as an expert witness. Wazzan’s assessment suggests that Musk should be compensated not only for his original financial contribution, but also for the long-term economic value he helped create during OpenAI’s formative years.

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Musk’s attorney, Steven Molo, framed the argument by comparing Musk’s role to that of an early-stage startup investor whose modest initial stake later turns into a massive return. In the filing, Molo wrote that the “wrongful gains” earned by OpenAI and Microsoft far exceed Musk’s original investment and should therefore be returned to him through damages.

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Musk stepped down from OpenAI’s board in 2018. Several years later, in 2023, he launched his own artificial intelligence company, positioning himself as a direct competitor in the rapidly expanding AI landscape. The legal dispute intensified in 2024, when Musk sued OpenAI and its chief executive officer, Sam Altman, alleging that the company’s transition toward a for-profit structure violated its founding principles.

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OpenAI and Microsoft have consistently denied Musk’s allegations. In a statement responding to the latest filing, OpenAI dismissed the damages demand as unfounded and accused Musk of using the lawsuit as a tool to harass the company.

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“Mr. Musk’s lawsuit continues to be baseless and part of an ongoing pattern of harassment,” OpenAI said. “We look forward to demonstrating this at trial. This latest demand is unserious and intended solely to advance that campaign.”

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The company has also warned investors to expect additional attention-grabbing claims from Musk as the case moves closer to trial. Microsoft, for its part, declined to comment on the filing.

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OpenAI, best known as the developer of ChatGPT, announced a major restructuring in October. Under the new framework, Microsoft received a 27% ownership stake in the company. OpenAI said the changes were designed to preserve nonprofit oversight while allowing its for-profit arm to raise capital and compete at scale. The nonprofit entity retains control over OpenAI’s for-profit operations, according to the company.

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Sam Altman has sharply criticized Musk’s lawsuit, characterizing it as an attempt to weaponize the legal system to slow a rival’s progress in an increasingly competitive AI market.

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The damages estimates laid out in Musk’s filing break down the alleged “wrongful gains” between the two defendants. Wazzan calculated that OpenAI’s portion ranges from $65.5 billion to $109.4 billion, while Microsoft’s share is estimated between $13.3 billion and $25.1 billion.

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These figures incorporate both Musk’s financial contributions and his non-monetary input, including technical guidance, strategic advice, and early business development support.

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In addition to compensatory damages, Musk has indicated that he intends to seek punitive damages, which could further raise the financial stakes if the jury sides with his claims.

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For investors, the case highlights growing tensions around governance, valuation, and control in the artificial intelligence sector. As AI companies mature and attract massive capital commitments, disputes over founding principles and ownership rights are likely to become more common.

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The outcome of this trial could influence how future AI ventures structure nonprofit and for-profit relationships and how early contributors protect their stakes as companies scale.

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With the jury trial now firmly on the calendar, the legal clash between Musk, OpenAI, and Microsoft is poised to become a defining moment for the business of artificial intelligence in 2026.

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