Elon Musk is suing OpenAI and Microsoft for up to $134 billion, claiming “wrongful gains” from his early support of OpenAI. He says OpenAI earned $65.5–$109.4 billion and Microsoft $13.3–$25.1 billion due to his contributions. Musk alleges the companies profited unfairly after he helped found OpenAI in 2015.
Musk contributed $38 million, about 60% of OpenAI’s initial seed funding, and helped recruit staff, build credibility, and connect founders with key contacts. He left the company in 2018 but now claims the restructuring to a for-profit entity violated OpenAI’s founding mission. Musk also runs xAI, a competitor to OpenAI’s ChatGPT.
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The billionaire seeks disgorgement of the alleged “wrongful gains” and may pursue punitive damages or injunctions if the jury rules in his favor. He argues early investors often see massive returns compared to initial contributions, and he deserves a similar share. OpenAI has dismissed the lawsuit as “baseless,” while Microsoft says there is no evidence of wrongdoing.
A federal judge in Oakland, California, has allowed the case to go to trial, expected in April. Musk’s filing included expert testimony from financial economist C. Paul Wazzan, detailing the contributions and potential profits. Both companies have not publicly responded to the latest filing outside business hours.
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If Musk succeeds, the case could reshape discussions around investor rights in AI startups and corporate restructuring. Legal experts say the lawsuit highlights the tension between nonprofit ideals and for-profit ambitions in the fast-growing AI sector. The trial is likely to attract global attention due to Musk’s high-profile involvement.