Elon Musk has escalated his legal battle against OpenAI Inc. and Microsoft, seeking financial damages estimated between $79 billion and $134 billion. The lawsuit alleges that OpenAI misled Musk by abandoning its original nonprofit mission and forming a close partnership with Microsoft that fundamentally altered the company’s direction. The damages request was outlined in a court filing submitted on Friday, one day after a federal judge rejected a final attempt by OpenAI and Microsoft to avoid a jury trial.
The case is scheduled to be heard in late April in Oakland, California, setting the stage for a high-profile confrontation in the artificial intelligence sector. According to the filing, Musk’s legal team argues that he is entitled to a significant share of OpenAI’s current valuation, which is estimated at approximately $500 billion. The claim is based on calculations provided by a financial economist serving as an expert witness, who contends that Musk was harmed after contributing roughly $38 million in seed funding when he helped found OpenAI in 2015.
The legal argument compares Musk’s position to that of an early investor in a startup, noting that initial contributions can lead to returns many times greater than the original investment. Musk’s attorneys argue that the gains earned by OpenAI and Microsoft constitute wrongful profits that should now be returned to him as part of the legal remedy. Musk stepped down from OpenAI’s board in 2018 and later launched his own artificial intelligence company in 2023. In 2024, he formally initiated legal action against OpenAI CEO and co-founder Sam Altman, challenging plans to operate OpenAI as a for-profit entity rather than adhering to its founding principles.
OpenAI and Microsoft have denied the allegations and disputed the financial calculations presented by Musk’s legal team. As the case moves toward trial, it raises broader questions about corporate governance, ethical commitments in artificial intelligence development, and the immense financial stakes surrounding one of the world’s most influential AI companies.
