Elon Musk Seeks Up to $134 Billion From OpenAI and Microsoft in Funding Dispute

Elon Musk has asked a federal court to award him as much as $134 billion from OpenAI and its major commercial partner Microsoft, arguing that both companies financially benefited from his early backing and involvement, according to a court filing made public on Friday.

In the filing, Musk claims that OpenAI derived gains estimated between $65.5 billion and $109.4 billion from his contributions during its formative years beginning in 2015. He further alleges that Microsoft gained between $13.3 billion and $25.1 billion as a result of OpenAI’s growth, which he says was enabled in part by his early support.

Musk’s lead trial attorney, Steven Molo, said OpenAI would not have achieved its current scale without Musk’s role as a co-founder. According to the statement, Musk supplied most of the startup’s initial funding, lent his public credibility, helped recruit talent, and shared expertise on building and scaling technology-driven businesses. A financial expert, the filing notes, has quantified the value of those contributions.

OpenAI rejected the claim, calling it an “unserious demand” and describing the lawsuit as part of what it termed a broader harassment campaign by Musk. Microsoft did not respond to requests for comment outside normal business hours.

Earlier in the week, OpenAI characterized the lawsuit as baseless, while Microsoft has argued there is no evidence it assisted or encouraged any alleged misconduct. In a separate filing on Friday, both companies formally challenged Musk’s damages calculations.

Musk, who left OpenAI in 2018 and now leads rival artificial intelligence firm xAI, which develops the chatbot Grok, has accused OpenAI of abandoning its original nonprofit mission by restructuring into a for-profit entity.

A judge in Oakland, California, ruled earlier this month that the case will proceed to a jury trial, currently expected to begin in April.

According to court documents, Musk invested roughly $38 million, accounting for about 60% of OpenAI’s early seed funding, and also assisted with recruiting staff, connecting founders with industry contacts, and establishing credibility for the organization in its early days.

The filing argues that, similar to early startup investors who may earn returns far exceeding their initial investments, Musk is entitled to recover what he describes as the “wrongful gains” accumulated by OpenAI and Microsoft. These figures were calculated by Musk’s expert witness, financial economist C. Paul Wazzan.

Musk is also seeking punitive damages and other remedies, including a potential injunction, should the jury find either company liable. OpenAI and Microsoft have asked the court to limit or exclude the expert testimony, contending that the analysis is speculative, unverifiable, and could mislead jurors.