Elon Musk is seeking between $79 billion and $134 billion in damages from OpenAI Inc. and Microsoft, alleging that the artificial intelligence company misled him by straying from its nonprofit mission and forming a close partnership with the tech giant.
According to a court filing submitted on Friday, Musk’s legal team outlined the massive damages claim one day after a federal judge denied OpenAI and Microsoft’s attempt to block a jury trial, which is scheduled for late April in Oakland, California.
The filing references an analysis by financial economist C. Paul Wazzan, who argues that Musk deserves a portion of OpenAI’s estimated $500 billion valuation. The claim is based on the assertion that Musk was deceived out of the $38 million he contributed as seed funding when he co-founded OpenAI in 2015.
Musk’s attorney, Steven Molo, compared the situation to an early-stage startup investment, stating that early contributors often see returns far exceeding their initial input. He argued that the profits OpenAI and Microsoft allegedly gained through misconduct should now be returned to Musk, even though his original contribution was relatively small.
After stepping down from OpenAI’s board in 2018, Musk launched his own AI company in 2023 and initiated legal action in 2024 against OpenAI CEO Sam Altman. The lawsuit challenges OpenAI’s shift toward a for-profit structure. Both OpenAI and Microsoft have rejected Musk’s claims.
In response, OpenAI described the lawsuit as unfounded and accused Musk of engaging in a sustained campaign of harassment. The company said it intends to refute the allegations in court and characterized the damages demand as another attempt to generate publicity.
Microsoft declined to issue a statement on the matter.
OpenAI, best known for developing ChatGPT, announced a restructuring plan in October, revealing that Microsoft would receive a 27% ownership stake. The company emphasized that its nonprofit arm would continue to oversee the for-profit entity.
Altman has criticized Musk’s lawsuit, calling it an abuse of the legal system designed to hinder a rival’s progress.
The damages estimate prepared by Wazzan factors in both Musk’s financial backing and his non-financial contributions, such as strategic and technical guidance. His calculations suggest OpenAI gained between $65.5 billion and $109.43 billion improperly, while Microsoft’s gains ranged from $13.3 billion to $25.06 billion.
Musk’s legal filing also indicates that he intends to pursue punitive damages in addition to the claimed losses.
