Elon Musk has demanded between $79 billion and $134 billion in damages from OpenAI and Microsoft, accusing the artificial intelligence firm of misleading him after it moved away from its original nonprofit structure.
The damages claim was detailed in court filings submitted on Friday, shortly after a US federal judge ruled that the case would move forward to a jury trial scheduled for late April in Oakland, California.
The lawsuit focuses on OpenAI’s internal restructuring, its close commercial partnership with Microsoft, and Musk’s early involvement as a co-founder and major financial supporter.
Lawsuit Focuses on OpenAI’s Valuation and Corporate Transformation
Musk’s legal team argues that OpenAI’s estimated $500 billion valuation represents gains obtained through actions that contradicted the nonprofit mission under which the organisation was launched in 2015.
Musk reportedly provided about $38 million in early funding before stepping down from OpenAI’s board in 2018. His lawyers claim that the company’s transition into a capped-profit, commercially oriented entity violated the expectations that guided his financial and strategic backing.
Breakdown of the Damages Claim
According to the filing, Musk’s lawyer Steven Molo said the damages estimate is based on an economic analysis prepared by C. Paul Wazzan, who is serving as an expert witness.
The assessment estimates:
- Alleged wrongful gains by OpenAI of between $65.5 billion and $109.43 billion
- Alleged gains attributed to Microsoft ranging from $13.3 billion to $25.06 billion
The calculations take into account not only Musk’s cash contributions but also non-financial support, including strategic guidance, technical input, and early business advice.
Molo likened Musk’s position to that of a seed-stage investor whose early involvement leads to massive downstream value, arguing that OpenAI and Microsoft realised outsized benefits compared to Musk’s original investment.
OpenAI Pushes Back Against Allegations
OpenAI and Microsoft have both denied the claims. Reacting to the latest court filing, OpenAI described the lawsuit as unfounded and accused Musk of engaging in a sustained campaign of harassment.
“Mr Musk’s lawsuit continues to be baseless and part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial,” the company said.
“This latest unserious demand is intended solely to advance that harassment campaign.” Microsoft declined to comment on the most recent filing.
High-Profile Trial Looms
OpenAI has also cautioned investors to expect additional high-profile claims as the trial date approaches, suggesting the dispute could escalate further.
With a prominent tech billionaire taking on one of the world’s most influential AI companies and its biggest corporate partner, the case is expected to attract significant global attention when it goes before a jury later this year.
