Elon Musk is seeking up to USD 134 billion from OpenAI and Microsoft, claiming wrongful gains linked to his early funding and support of OpenAI. The lawsuit alleges a breach of OpenAI’s founding mission after its shift towards a for-profit model. A jury trial is scheduled for April in California.

Elon Musk (Photo Credits: Wikimedia Commons)

Mumbai, January 17: Elon Musk is seeking up to USD 134 billion from OpenAI and Microsoft, according to a federal court filing submitted on Friday. The billionaire entrepreneur argues that he is entitled to the wrongful gains both companies allegedly accrued due to his early financial backing and foundational support of the artificial intelligence start-up. Musk, who co-founded OpenAI in 2015 before departing in 2018, claims his initial contributions were instrumental in creating the value the companies now enjoy.

In the filing, Musk’s legal team estimates that OpenAI gained between USD 65.5 billion and USD 109.4 billion from his early involvement, while Microsoft gained between USD 13.3 billion and USD 25.1 billion. The figures were calculated by Musk’s expert witness, financial economist C. Paul Wazzan. This escalation comes ahead of a high-profile trial in Oakland, California, which a judge has ruled will be heard by a jury starting in April. Elon Musk’s xAI Sued by Ashley St Clair, Mother of Musk’s Child, Alleging Grok Chatbot Generated Explicit Deepfake Images of Her.

Allegations of Mission Drift and For-Profit Shift

The core of Musk’s lawsuit alleges that OpenAI violated its founding mission to develop artificial general intelligence for the benefit of humanity. Musk contends that the organisation’s shift towards a for-profit structure and its multi-billion-dollar partnership with Microsoft constitute a breach of the founding agreement. He argues that his early seed funding of approximately USD 38 million represented 60 per cent of OpenAI’s initial capital.

Elon Musk OpenAI Microsoft Lawsuit Update

Musk further asserts that beyond financial aid, he helped recruit top-tier staff and provided the project with essential credibility. The filing compares his situation to that of an early investor in a start-up, stating that the gains realised by OpenAI and Microsoft are many orders of magnitude greater than his initial investment. Musk is now seeking the disgorgement of these profits, along with potential punitive damages and an injunction.

OpenAI and Microsoft Reject Damages Claims

OpenAI and Microsoft have dismissed the lawsuit as baseless and characterised Musk’s legal actions as a harassment campaign. Lawyers for Microsoft have argued that there is no evidence the company aided or abetted any wrongdoing by OpenAI. In a separate filing on Friday, both companies challenged Musk’s damages claims and requested that the judge limit or exclude the testimony of Musk’s expert witness.

OpenAI vs Elon Musk Trial April 2026

The defendants described the USD 134 billion demand as implausible, unverifiable and unprecedented. They argue that the financial analysis used to reach these figures is unreliable and could potentially mislead the jury. The companies maintain that the proposed transfer of billions from a non-profit organisation to a former donor who now runs a direct competitor, xAI, is legally and factually groundless.

Legal Implications and Competitive Context

The outcome of the trial could have significant implications for the artificial intelligence industry and the legal interpretation of non-profit missions. Since leaving OpenAI, Musk has launched xAI and its chatbot, Grok, which competes directly with OpenAI’s ChatGPT. This competitive dynamic has been highlighted by the defence, which suggests Musk is using the legal system to undermine a market rival. Elon Musk Trolls Ryanair on X, Considers Buying Airline and Replacing CEO Michael O’Leary With Someone Named ‘Ryan’ After X Outage Wi-Fi Taunt.

If the jury finds either company liable in April, the court could impose substantial financial penalties or issue an injunction that may alter the existing partnership structure between OpenAI and Microsoft. For now, the legal battle centres on whether a donor’s initial intent can dictate the future profits of a global technology company and its key partners.