Musk Demands $134 Billion from OpenAI and Microsoft

Elon Musk's Massive Lawsuit Against AI Giants

Tech billionaire Elon Musk has escalated his legal battle against OpenAI and Microsoft, demanding compensation of up to $134 billion in what could become one of the largest corporate lawsuits in history. The Tesla and SpaceX CEO alleges that the AI companies made "wrongful gains" from his early support and contributions when he helped found OpenAI in 2015.

The Core of the Dispute

Musk claims he was instrumental in OpenAI's early development, providing approximately 60% of the initial seed funding - $38 million - and helping recruit key personnel, establish business contacts, and lend credibility to the startup. According to court filings, financial expert C. Paul Wazzan calculated that OpenAI earned between $65.5 billion and $109.4 billion in "wrongful gains," while Microsoft saw between $13.3 billion and $25.1 billion in benefits from Musk's contributions.

'OpenAI has engaged in a pattern of deception and breach of their founding principles,' Musk stated in court documents. 'What began as a nonprofit dedicated to developing safe AI for humanity has become a profit-driven enterprise that has enriched itself at the expense of its original mission.'

OpenAI's Response and Counterclaims

OpenAI has vehemently denied Musk's allegations, calling the lawsuit "baseless" and part of what they describe as Musk's "ongoing pattern of harassment." OpenAI CEO Sam Altman has suggested that Musk's motivations may be competitive, given that Musk founded his own AI company, xAI, in 2023, which developed the Grok chatbot as a competitor to OpenAI's ChatGPT.

'This lawsuit represents an attempt to undermine OpenAI's success through legal intimidation,' an OpenAI spokesperson told CNBC. 'Elon wanted full control of OpenAI and when he didn't get it, he left and now seeks to profit from our success.'

Historical Context and Founding Principles

OpenAI was founded in December 2015 as a nonprofit research organization with the mission to develop "safe and beneficial" artificial general intelligence. According to Wikipedia, the organization was established by Musk, Altman, Greg Brockman, Ilya Sutskever, and others with $1 billion in pledged capital, though only $130 million had been received by 2019. Musk served as co-chair until his departure in 2018 due to disagreements about the company's direction.

The current legal battle centers on OpenAI's 2023 restructuring, which created a for-profit subsidiary while maintaining a nonprofit foundation. This shift, according to Musk, violated the original agreement that OpenAI would remain a nonprofit dedicated to open-source AI development.

Upcoming Trial and Industry Implications

The case is scheduled to go to trial on April 27, 2026, in Oakland, California, and is expected to last several weeks. Legal experts suggest the outcome could have far-reaching implications for the AI industry, potentially setting precedents for how founding agreements are interpreted and enforced in rapidly evolving tech sectors.

Microsoft, which has invested over $13 billion in OpenAI and provides Azure cloud computing resources, has joined OpenAI in defending against Musk's claims. The software giant argues that its partnership with OpenAI has been transparent and beneficial for advancing AI technology responsibly.

As the trial approaches, industry observers are watching closely. 'This case goes beyond just financial compensation,' said AI ethics researcher Dr. Sarah Chen. 'It raises fundamental questions about corporate responsibility, ethical commitments in tech, and how we ensure that powerful technologies like AI remain aligned with their stated purposes.'