Billionaire tech entrepreneur Elon Musk is seeking between $79 billion and $134 billion in damages from OpenAI and Microsoft, alleging that the artificial intelligence firm abandoned its original nonprofit mission and defrauded him in the process.
The demand was disclosed in court filings submitted on Friday, following a decision by a U.S. federal judge to allow the case to proceed to a jury trial scheduled for late April in Oakland, California. The lawsuit centres on OpenAI’s restructuring, its deepening partnership with Microsoft, and Musk’s early role as a co-founder and major benefactor.
Musk, who donated approximately $38 million in seed funding to OpenAI before exiting its board in 2018, argues that the company’s transformation into a commercially dominant AI powerhouse violates the principles under which it was founded in 2015.
What Musk is claiming
According to the filing, Musk’s legal team contends that OpenAI’s current valuation—estimated at around $500 billion—reflects gains derived from what they describe as a wrongful shift away from its nonprofit mandate.
Musk’s lawyer, Steven Molo, said the damages claim is based on analysis by financial economist C. Paul Wazzan, who is serving as an expert witness in the case. Wazzan’s assessment suggests that Musk is entitled to a significant share of OpenAI’s value due to his financial backing and strategic input during the company’s formative years.
The filing estimates that:
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OpenAI’s alleged wrongful gains range between $65.50 billion and $109.43 billion
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Microsoft’s gains linked to the restructuring are estimated between $13.30 billion and $25.06 billion
The calculations also account for Musk’s non-financial contributions, including technical guidance and business strategy, which his lawyers argue were critical to OpenAI’s early success.
Molo likened Musk’s position to that of an early-stage startup investor whose modest initial stake later translates into massive value as the company scales exponentially.
OpenAI pushes back
Both OpenAI and Microsoft have firmly rejected Musk’s claims. In a statement responding to the latest filing, OpenAI described the lawsuit as baseless and part of a broader pattern of 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,” the company said.
“This latest unserious demand is aimed solely at furthering this harassment campaign.”
Microsoft declined to comment on the new damages claim, while OpenAI has warned investors to expect more high-profile allegations as the trial date approaches.
Background to the dispute
OpenAI announced a major restructuring in October, granting Microsoft a 27% ownership stake in its for-profit arm while maintaining nonprofit oversight. Musk has argued that this structure undermines the organisation’s founding mission.
In 2024, Musk sued OpenAI and its leadership, including Sam Altman and Greg Brockman, accusing them of turning the organisation into a profit-driven enterprise contrary to its original purpose.
Musk has consistently maintained that OpenAI was created to develop artificial intelligence for the benefit of humanity, and to serve as a counterweight to the growing dominance of companies like Google in advanced AI research.
His latest court filing also signals an intention to seek punitive damages, a move that could further escalate the financial and reputational stakes of one of Silicon Valley’s most closely watched legal battles.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
