Musk seeks up to $134 billion from OpenAI and Microsoft in fraud case

Elon Musk is seeking between $79 billion and $134 billion in damages from OpenAI Inc. and Microsoft, claiming the companies defrauded him by abandoning OpenAI’s nonprofit mission and partnering with the software giant, as per foreign media.

Musk’s lawyer outlined the damages request in a court filing on January 16, one day after a federal judge rejected OpenAI and Microsoft’s final attempt to avoid a jury trial scheduled for late April in Oakland, California.

The filing cites calculations by financial economist C. Paul Wazzan, who determined that Musk is entitled to a portion of OpenAI’s current $500 billion valuation. Musk alleges he was defrauded of the $38 million in seed money he contributed to OpenAI when he co-founded the startup in 2015.

“Just as an early investor in a startup may realise gains many times larger than the initial investment, the wrongful gains OpenAI and Microsoft have earned—and which Musk is now entitled to reclaim—are far greater than Musk’s initial contributions,” Musk’s lawyer Steven Molo wrote in the filing.

Musk left OpenAI’s board in 2018, launched his own AI company in 2023, and began a legal battle in 2024 with OpenAI CEO Sam Altman over plans to operate OpenAI as a for-profit entity. OpenAI and Microsoft have denied the allegations.

“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,” OpenAI said in a statement. “This latest unserious demand is aimed solely at furthering this harassment campaign.”

OpenAI has also warned investors to expect high-profile claims from Musk as the legal fight approaches trial. Microsoft declined to comment.

OpenAI, the creator of ChatGPT, restructured in October 2025, giving a 27% ownership stake to Microsoft while retaining nonprofit oversight of its for-profit operations. Altman described Musk’s lawsuit as an attempt to use the courts to slow down a competitor.

According to the filing, Wazzan calculated Musk’s damages by combining his financial and non-monetary contributions, including technical and business advice. The wrongful gains are estimated at $65.5 billion to $109.43 billion for OpenAI and $13.3 billion to $25.06 billion for Microsoft. Musk’s filing also indicates he intends to pursue punitive damages.

By Tamilla Hasanova