Elon Musk has intensified his legal confrontation with OpenAI and Microsoft, seeking damages ranging from $79 billion to as much as $134 billion, in what is shaping up to be one of the most consequential lawsuits in the artificial intelligence industry. The billionaire entrepreneur alleges that OpenAI, which he co-founded in 2015, abandoned its original non-profit mission and misled him while entering into a highly lucrative partnership with Microsoft.
The latest escalation comes after Musk’s legal team submitted a court filing detailing the scale of damages he claims to have suffered. The filing was made just a day after a federal judge rejected attempts by OpenAI and Microsoft to avoid a jury trial, allowing the case to move forward. The trial is now scheduled to begin in late April, marking a major turning point in a dispute that has drawn global attention.
At the core of Musk’s argument is his early role in building OpenAI. He maintains that he provided crucial financial backing, contributing approximately $38 million when the organization was founded as a non-profit research lab committed to developing artificial intelligence for the benefit of humanity. Musk argues that OpenAI’s transformation into a commercially driven entity has unfairly excluded him from the extraordinary value created by the company.
According to the court filing, Musk believes he is entitled to a portion of OpenAI’s current estimated valuation of $500 billion. His legal team contends that OpenAI’s shift away from its non-profit roots, combined with its deep financial and strategic ties with Microsoft, amounts to fraud and a breach of the original understanding under which Musk supported the venture.
How the Damages Were Calculated
The damages figure cited in the filing is based on calculations prepared by financial economist C. Paul Wazzan, who was presented as an expert witness. Wazzan’s analysis takes into account not only Musk’s financial contributions but also his non-monetary involvement, including technical input, strategic guidance, and business advice during OpenAI’s early development. The filing claims that OpenAI’s alleged wrongful gains range between $65.5 billion and $109.43 billion, while Microsoft’s gains are estimated at $13.3 billion to $25.06 billion.
Musk’s lawyer, Steven Molo, argued that early contributors to a startup are often rewarded with returns far exceeding their initial investments. He stated that the scale of OpenAI and Microsoft’s gains reflects the value of what Musk helped create and that those gains should now be returned, or disgorged, to Musk as part of the damages.
Musk stepped down from OpenAI’s board in 2018, and his relationship with the company has steadily deteriorated since then. The rift became more public after the launch of ChatGPT in late 2022, which turned OpenAI into a global leader in generative AI and dramatically increased its valuation. Since that time, Musk has emerged as one of OpenAI’s most vocal critics, repeatedly accusing the company of prioritizing profits over public benefit.
He has described OpenAI as a “closed-source, maximum-profit company” that is effectively controlled by Microsoft, a sharp contrast to the open and safety-focused vision he says motivated its founding. Musk has also personally attacked OpenAI CEO Sam Altman, using harsh language in public statements and social media posts.
OpenAI has strongly denied Musk’s allegations. In a statement responding to the latest filing, the company described the lawsuit as baseless and part of what it characterized as a pattern of harassment. OpenAI said it looks forward to presenting its case at trial and warned investors that Musk may continue making attention-grabbing claims as the legal process unfolds.
The company has also maintained that Musk left OpenAI because he was unable to secure the level of control he wanted. According to OpenAI, Musk had pushed for the organization to be merged with Tesla, an idea that was rejected by other leaders, leading to his eventual departure.
Microsoft’s Role in the Dispute
Microsoft, which holds a significant stake in OpenAI following its restructuring, has remained largely restrained in its public comments. However, Musk’s lawsuit alleges that Microsoft benefited enormously from OpenAI’s departure from its non-profit model, particularly through privileged access to its AI technologies and research.
Last year, OpenAI announced plans to restructure into a public benefit corporation, granting Microsoft a reported 27 percent stake while keeping the non-profit parent organization formally in control. The move reignited debate across the tech industry about whether OpenAI has remained faithful to its founding principles or has embraced a profit-driven model inconsistent with its original mission.
As the case heads toward a jury trial, it is expected to raise far-reaching questions about governance, transparency, and ethics in artificial intelligence development. Beyond the staggering financial sums involved, the lawsuit highlights growing tensions between idealistic visions of AI serving the public good and the commercial realities driving the industry’s rapid expansion.
The outcome of the trial could have significant implications not only for OpenAI, Microsoft, and Musk, but also for how future AI ventures balance innovation, accountability, and profit in an increasingly competitive global landscape.