Musk Demands as Much as $134 Billion From OpenAI and Microsoft

Elon Musk is pursuing damages of up to $134 billion from OpenAI and Microsoft, arguing that the companies unfairly profited from his early involvement and financial backing, according to a court filing submitted Friday.

In the filing, Musk claims that OpenAI benefited by $65.5 billion to $109.4 billion as a result of his role in founding the organization in 2015, while Microsoft allegedly gained between $13.3 billion and $25.1 billion from those same contributions. The document was filed ahead of Musk’s upcoming trial against the two companies in federal court.

Musk’s lead attorney, Steven Molo, said that OpenAI would not exist without Musk’s early support. According to Molo, Musk supplied most of the initial funding, used his public reputation to legitimize the venture, and shared his expertise in scaling technology companies. An expert witness, he said, has calculated the monetary value of those efforts.

Neither OpenAI nor Microsoft responded to requests for comment outside normal business hours regarding the compensation Musk is seeking.

Companies Push Back

Earlier this week, OpenAI described Musk’s lawsuit as unfounded and accused him of engaging in a pattern of harassment. Microsoft’s legal team has stated that there is no proof the company assisted OpenAI in any alleged wrongdoing.

In a separate filing submitted Friday, OpenAI and Microsoft challenged Musk’s damage calculations, asking the court to restrict what his expert witness can present at trial. They argue the analysis is speculative, unverifiable, and unprecedented, and that it attempts to justify an unrealistic transfer of billions of dollars from a nonprofit organization to a former donor who is now a competitor.

Musk departed OpenAI in 2018 and currently runs xAI, which develops the chatbot Grok. He alleges that OpenAI abandoned its original nonprofit mission by restructuring into a for-profit entity centered around products such as ChatGPT.

Earlier this month, a judge in Oakland, California, ruled that the case will proceed to a jury trial, which is expected to begin in April.

According to the filing, Musk contributed approximately $38 million, representing about 60% of OpenAI’s early seed funding. He also claims to have played a key role in recruiting employees, connecting founders with influential contacts, and lending credibility to the organization during its early stages.

Musk argues that, similar to how early startup investors can realize returns far exceeding their initial investments, the financial gains reaped by OpenAI and Microsoft far surpass his original contributions and should now be returned to him.

The valuation of Musk’s contributions was prepared by his expert witness, financial economist C. Paul Wazzan.

If the jury rules in Musk’s favor, he may also seek punitive damages and other penalties, including potential court-ordered restrictions on the companies, though the filing does not specify what form those measures would take.

OpenAI and Microsoft have broadly disputed Musk’s figures, warning that the expert’s methodology is unreliable and could confuse jurors.