Elon Musk is suing OpenAI and Microsoft, demanding between $79 billion and $134 billion in damages because he claims the AI company abandoned its nonprofit mission.
The legal battle, scheduled for late April in Oakland, California, revolves around OpenAI’s restructuring, its partnership with Microsoft, and Musk’s early role as co-founder and major donor.
Musk Launches Legal Battle
Musk argues that the company, now valued at roughly $500 billion, gained enormous profits after it shifted away from the nonprofit principles it embraced in 2015.
Early Contributions Under Scrutiny
Musk contributed around $38 million to OpenAI before he left its board in 2018.
Furthermore, his lawyer, Steven Molo, cites analysis by financial expert C. Paul Wazzan, who calculates that Musk’s contributions entitle him to a significant share of OpenAI’s current value.
The filings suggest OpenAI’s alleged gains range from $65.5 billion to $109.4 billion, while Microsoft could gain $13.3 billion to $25.1 billion
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From Musk’s perspective, the company promised to develop AI for humanity’s benefit and counter competitive threats from tech giants like Google.
He claims that OpenAI leaders Sam Altman and Greg Brockman persuaded him to fund the startup under these assurances, but they later steered it toward profit.
Moreover, Musk plans to seek punitive damages, which could raise the financial stakes further.
Companies Push Back
OpenAI and Microsoft reject the allegations.
OpenAI calls the lawsuit “baseless” and accuses Musk of pursuing an ongoing harassment campaign, while Microsoft declines to comment.
Meanwhile, investors have received warnings to expect additional high-profile claims.
Overall, the case highlights the growing tension in AI between founding ideals, early investments, and billions in valuation, leaving courts to decide whose promises truly matter.
