San Francisco, January 17, 2026 — Elon Musk has filed a court document demanding between $79 billion and $134 billion in damages from OpenAI and Microsoft, claiming entitlement to “wrongful gains” he alleges they derived from his early contributions to the AI startup he co-founded in 2015. According to Reuters, Musk asserts that OpenAI and Microsoft profited enormously from his financial support, technical expertise, business guidance, recruitment efforts, and the credibility he provided during OpenAI’s founding years.
In a pre-trial filing submitted Friday in U.S. federal court in Oakland, California, Musk’s legal team noted that he contributed approximately $38 million — roughly 60% of OpenAI’s early seed funding — before departing the board in 2018. Financial economist and expert witness C. Paul Wazzan calculated the alleged wrongful gains, estimating $65.5 billion to $109.4 billion for OpenAI and $13.3 billion to $25.1 billion for Microsoft. The totals align with Musk’s requested damages of up to $134 billion, drawing an analogy to early investors in startups who reap exponential returns far exceeding initial outlays.
Musk’s lawsuit, ongoing since 2024, centers on accusations that OpenAI breached its original nonprofit mission — focused on safe, broadly beneficial artificial general intelligence — by restructuring toward a for-profit model and deepening ties with Microsoft. He alleges this shift defrauded him after assurances that OpenAI would remain nonprofit-oriented.
The filing comes ahead of a jury trial set for late April 2026, following a recent ruling by U.S. District Judge Yvonne Gonzalez Rogers allowing the case to proceed. Musk may also pursue punitive damages or injunctive relief if liability is established, though specifics remain undisclosed.
OpenAI has dismissed the claims as “baseless” and part of an “ongoing pattern of harassment” by Musk, who now competes directly through his xAI venture and its Grok chatbot, according to Bloomberg. Microsoft and Musk’s representatives did not immediately comment outside business hours.
The dispute highlights intensifying rivalry in the generative AI sector, where OpenAI’s valuation has soared amid rapid advancements in models like ChatGPT. The outcome could influence governance, partnerships, and accountability across the fast-evolving AI industry.
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