OAKLAND, Calif. (Diya TV) — Elon Musk has escalated his legal fight with OpenAI and Microsoft, seeking up to $134 billion in damages in a lawsuit that could reshape the future of artificial intelligence and Silicon Valley partnerships.
The case centers on Musk’s claim that his early funding, guidance, and reputation helped build OpenAI into a global AI leader. He argues that OpenAI’s shift toward a for-profit structure violated its founding mission and generated massive gains that now belong, in part, to him. The lawsuit, filed in federal court, sets the stage for a high-profile jury trial expected to begin in April.
Musk co-founded OpenAI in 2015 as a nonprofit focused on safe and open artificial intelligence. He left the organization in 2018. Since then, OpenAI has launched ChatGPT and entered a deep partnership with Microsoft, which has invested billions in the company. In his latest court filing, Musk says OpenAI gained between $65.5 billion and $109.4 billion from his early contributions. He also claims Microsoft gained between $13.3 billion and $25.1 billion as a result of that support.
Musk donated about $38 million during OpenAI’s early days. His lawyers say that amount made up roughly 60% of the startup’s seed funding. They also argue that Musk helped recruit staff, connect founders with key contacts, and lend credibility to a young organization that lacked a track record.
“Without Elon Musk, there’d be no OpenAI,” said Musk’s lead trial lawyer, Steven Molo, in a statement to Reuters.
Musk’s lawsuit seeks what the filing calls “wrongful gains.” His legal team compares his role to that of an early startup investor who later sees returns far beyond the initial investment. The filing argues that OpenAI’s move toward a for-profit model triggered a right to compensation tied to the value created from Musk’s early involvement. A financial economist, C. Paul Wazzan, calculated the damages cited in the case, according to the filing.
Musk may also seek punitive damages and other penalties. These could include an injunction if a jury finds OpenAI or Microsoft liable. The filing does not specify what form such an injunction would take. When asked about the lawsuit, Musk responded with a warning tone. “I’ve lost a few battles over the years, but I’ve never lost a war,” he said.
OpenAI has rejected Musk’s claims in strong terms. The company called the lawsuit “baseless” and labeled it part of a broader “harassment campaign” by a former donor who now runs a rival AI company. Microsoft has not commented on the amount of damages Musk seeks. In court filings, a Microsoft lawyer said there is no evidence the company “aided and abetted” any alleged wrongdoing.
Both companies have asked the judge to limit what Musk’s expert witness can present to jurors. They argue that the damages analysis is unreliable, unverifiable, and unprecedented. They also say it seeks an implausible transfer of billions from a nonprofit organization to a former supporter turned competitor.
Earlier this month, a judge in Oakland ruled that a jury will hear the case. The decision keeps Musk’s core claims alive and raises the stakes for OpenAI and Microsoft as public scrutiny of AI governance grows. Musk now runs xAI, which competes directly with OpenAI through its Grok chatbot. That rivalry adds another layer of tension to a lawsuit already packed with financial and ethical questions.
The lawsuit could set a major precedent for how early contributors to nonprofit tech ventures seek compensation after later restructuring. It also highlights growing debate over the commercialization of artificial intelligence and the promises made at its birth. With billions of dollars at issue and some of the world’s most powerful tech players involved, the case promises to become one of the most closely watched legal battles in the AI era.
