Elon Musk is escalating his legal battle against OpenAI and Microsoft, demanding between $79 billion and $134 billion in damages over allegations that he was defrauded by the AI company he helped establish. The staggering claim was detailed in a court filing submitted Friday by Musk’s legal team ahead of a high-stakes jury trial scheduled for April in Oakland, California.
The damages calculation was prepared by C. Paul Wazzan, described as a financial economist with extensive professional and academic credentials. According to the filing, Musk alleges he was defrauded of the $38 million in seed money he donated to OpenAI when he co-founded the organization in 2015. The lawsuit claims Musk is now entitled to a substantial percentage of OpenAI’s current $500 billion valuation.
Wazzan’s analysis breaks down the damages into two components: $65.50 billion to $109.43 billion in “wrongful gains” from OpenAI, and an additional $13.30 billion to $25.06 billion from Microsoft’s alleged wrongful gains. Musk expressed confidence about the upcoming trial on his social media platform X, stating: “Can’t wait to start the trial. The discovery and testimony will blow your mind.”
The core of Musk’s lawsuit targets OpenAI’s key leadership, including CEO Sam Altman and President Greg Brockman, alleging they misled him by abandoning the company’s original nonprofit mission. Musk claims the shift toward a for-profit model betrayed the founding principles he supported with his initial investment.
OpenAI has mounted a vigorous defense, publishing a blog post titled “The truth Elon left out” that provides commentary alongside excerpts from recently unsealed court documents. The company alleges that Musk wanted “full control” of OpenAI because “he’d been burned by not having it in the past.” Perhaps most surprisingly, OpenAI revealed that during succession planning discussions, Musk suggested having his children control AGI (artificial general intelligence).
An OpenAI spokesperson dismissed the lawsuit as “baseless” and part of Musk’s “ongoing pattern of harassment,” calling the latest demand “unserious” and aimed at “furthering this harassment campaign.” The company emphasized its focus on empowering the OpenAI Foundation, which it describes as “one of the best-resourced nonprofits ever.” Neither Musk nor Microsoft immediately responded to requests for comment.
Key Quotes
Can’t wait to start the trial. The discovery and testimony will blow your mind.
Elon Musk posted this statement on his social media platform X on Friday, expressing confidence about the upcoming trial and suggesting that evidence revealed during discovery will be shocking or revelatory.
Mr. Musk’s lawsuit continues to be baseless and a part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial.
An OpenAI spokesperson provided this response to Business Insider, characterizing Musk’s legal action as unfounded harassment rather than a legitimate legal claim, signaling the company’s intention to vigorously defend itself.
This latest unserious demand is aimed solely at furthering this harassment campaign. We remain focused on empowering the OpenAI Foundation, which is already one of the best-resourced nonprofits ever.
The OpenAI spokesperson continued, dismissing the $79-134 billion damages claim as lacking merit and emphasizing the company’s commitment to its nonprofit foundation despite the ongoing legal battle.
Our Take
This lawsuit transcends a simple business dispute—it’s a battle over the soul of AI development. Musk’s claim that he was defrauded speaks to deeper anxieties about how quickly OpenAI pivoted from its nonprofit, open-source roots to become a commercial juggernaut partnered with Microsoft. The $134 billion figure, while eye-popping, reflects OpenAI’s extraordinary valuation growth, raising legitimate questions about whether early supporters were misled about the company’s trajectory. OpenAI’s counternarrative—that Musk wanted total control and even suggested his children govern AGI—paints him as a spurned founder seeking revenge. The April trial could become a watershed moment, potentially exposing internal deliberations about AGI safety, corporate governance, and the commercialization of transformative technology. Regardless of the outcome, this case will likely influence how AI companies structure themselves and communicate their missions to investors and the public.
Why This Matters
This legal battle represents one of the most significant disputes in AI industry history, involving the sector’s most prominent figures and companies. The case could set important precedents for how AI companies transition from nonprofit to for-profit structures and the obligations they have to early investors and founders.
The $134 billion demand reflects not just personal grievances but fundamental questions about AI governance, control, and mission. As OpenAI has evolved from a research nonprofit into a commercial powerhouse valued at $500 billion, questions about its original commitments have intensified. The lawsuit highlights tensions between open AI development and commercial interests—a debate that affects the entire industry’s trajectory.
For the broader AI ecosystem, this case could influence how future AI ventures structure themselves, handle founder disputes, and balance profit motives with stated missions. The revelation about AGI succession planning also raises critical questions about who should control transformative AI technologies. With the trial set for April, the discovery process and testimony could reveal unprecedented details about OpenAI’s internal operations, Microsoft’s partnership arrangements, and the decision-making that shaped today’s AI landscape.
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Source: https://www.businessinsider.com/musk-seeks-134-billion-legal-battle-over-open-ai-microsoft-2026-01