Elon Musk Demands $134 Billion from OpenAI and Microsoft in Explosive Legal Challenge
Elon Musk has launched a legal offensive against OpenAI and Microsoft, demanding a staggering $134 billion in damages. The lawsuit alleges a fundamental betrayal of OpenAI's founding principles, accusing the AI giant of prioritizing profit over its original mission to benefit humanity.
The Core of the Conflict
At the heart of Musk's challenge is the claim that OpenAI's pivot and its deep partnership with Microsoft constitute a breach of its initial non-profit, open-source charter. The suit argues this shift has created a closed, for-profit entity that Musk claims locks away critical AI advancements behind corporate walls.
A Financial Earthquake in Tech
The $134 billion figure isn't just a number—it's a seismic charge meant to shake the foundations of the AI industry's biggest alliance. For context, that sum eclipses the annual GDP of some nations and represents a direct assault on the valuation and future revenue models of both defendants. It's the kind of legal Hail Mary that makes even the most bullish tech investor's portfolio twitch—a reminder that in Silicon Valley, the biggest risks aren't always market volatility, but former friends with lawyers.
What This Means for the AI Race
This isn't merely a contract dispute; it's a battle for the soul of artificial intelligence development. A successful challenge could force a radical restructuring of OpenAI's governance and its lucrative deal with Microsoft, potentially opening the door for more decentralized or competitive AI models. It throws a massive wrench into the carefully calibrated machinery of the current AI oligopoly.
The outcome will either validate the current path of corporate-led AI or become a landmark case that redefines the rules of the game. Either way, the tech world is watching—and recalculating its risk assessments.
Expert calculates damages based on startup contribution
According to the filing, financial economist C. Paul Wazzan calculated that Musk deserves a portion of OpenAI’s present $500 billion value because he was allegedly cheated out of the $38 million in startup funds he gave when he helped establish the company in 2015.
“Just as an early investor in a startup company may realize gains many orders of magnitude greater than the investor’s initial investment, the wrongful gains that OpenAI and Microsoft have earned – and which Mr. Musk is now entitled to disgorge – are much larger than Mr. Musk’s initial contributions,” wrote Steven Molo, Musk’s attorney.
Musk departed from OpenAI’s board in 2018 and started his own artificial intelligence venture in 2023. He initiated legal proceedings in 2024 against Sam Altman regarding the OpenAI co-founder and chief executive’s intentions to transform the organization into a for-profit entity. Both OpenAI and Microsoft have rejected his accusations.
OpenAI calls lawsuit baseless harassment
“Mr Musk’s lawsuit continues to be baseless and a part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial,” OpenAI stated. “This latest unserious demand is aimed solely at furthering this harassment campaign.”
OpenAI has cautioned investors to anticipate Musk making headline-grabbing statements as the case moves toward trial. Microsoft chose not to provide a statement.
The company behind ChatGPT revealed its reorganization in October, stating it had granted a 27% ownership share to its long-term supporter Microsoft in a change that WOULD maintain the nonprofit division’s oversight of for-profit activities.
Altman has criticized Musk’s legal challenge to OpenAI’s reorganization as misusing the court system to hinder a business rival.
The expert witness Wazzan determined the damage amount by adding together Musk’s financial contributions and other non-monetary inputs, such as technical and business guidance, to OpenAI. His calculations show the alleged improper gains amount to $65.50 billion to $109.43 billion for OpenAI and $13.30 billion to $25.06 billion for Microsoft.
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