Musk Demands Up To $134B In Lawsuit Against OpenAI

Elon Musk asked a federal court to award him as much as $134 billion from OpenAI and Microsoft, according to a filing released on January 17.

Musk said the companies profited substantially from his early financial and operational involvement in OpenAI.

Musk claimed that OpenAI’s valuation increase translated into gains of roughly $65.5 billion to $109.4 billion tied to his contributions, while Microsoft’s benefits totaled between $13.3 billion and $25.1 billion.

He said those figures reflected not only funding, but also credibility, recruiting help, and business guidance he provided when OpenAI was formed.

OpenAI dismissed the request, describing it as meritless and part of a pattern of litigation intended to pressure the company. Microsoft declined to comment on the size of the claim.

Both companies filed motions challenging the methodology used to calculate the damages.

Musk exited OpenAI in 2018 and later founded xAI, a rival artificial intelligence company. His lawsuit accused OpenAI of abandoning its original nonprofit mission after restructuring into a for-profit entity.

Why This Matters Today

If the court accepts Musk’s argument, the case could redefine how early contributors are compensated when research-focused organizations later commercialize their work.

The claim tested whether early influence and reputation could be treated as recoverable economic value years later.

The dispute also spotlighted tensions around governance in AI development.

OpenAI’s shift in structure remained central to Musk’s argument that the organization departed from the principles under which he initially participated.

A judge in California has ruled that a jury will hear the case, with trial proceedings expected to begin in April.

The verdict could affect how future AI ventures structure funding, control, and founder relationships.

Our Key Takeaways:

  • Elon Musk is pursuing up to $134 billion in damages from OpenAI, and Microsoft is tied to his early role in OpenAI’s creation.

  • Both companies challenged the damage estimates and disputed Musk’s claim to later financial gains.

  • The case is headed to a jury trial in April and could influence future AI governance and funding models.

You may also want to check out some of our other tech news updates.

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