Elon Musk Targets OpenAI and Microsoft for Billions
Elon Musk is taking legal action against OpenAI and Microsoft, seeking between $79 billion and $134 billion in damages. Musk claims he is owed “wrongful gains” following his early investment in OpenAI, arguing that both companies profited massively while denying him a share. The dispute, which reignites debates over the value of AI ventures, centers on Musk’s 2015 seed funding of $38 million.
Court filings reveal calculations by financial economist C. Paul Wazzan, estimating Musk’s entitlement based on OpenAI’s current $500 billion valuation. According to the filings, Musk is seeking between $65.5 billion and $109.43 billion from OpenAI alone, with an additional $13.3 billion to $25.06 billion targeted at Microsoft, OpenAI’s largest partner.
Musk Claims Early Investment Was Misused
Musk’s lawsuit argues that his early contributions were taken under false pretenses. Initially, OpenAI operated as a non-profit organization, attracting Musk and other investors with promises of ethical AI development. However, Musk alleges that the company later pivoted toward profit and heavily prioritized Microsoft’s interests, leaving him without a rightful share in the financial windfall.
Steven Molo, Musk’s lawyer, highlighted this point in court documents: “Just as an early investor in a startup company may realize gains many orders of magnitude greater than the investor’s initial investment, the wrongful gains that OpenAI and Microsoft have earned are much larger than Mr. Musk’s initial contributions.”
Timeline of Musk’s Departure and Legal Action
Elon Musk departed from OpenAI in 2018, citing concerns over the company’s direction. He began his legal campaign six years later, in 2024, accusing OpenAI of abandoning its non-profit mission. Musk also publicly criticized OpenAI CEO Sam Altman, posting on X that “You stole a non-profit,” signaling his frustration with the company’s shift toward commercial partnerships.
The timing of this lawsuit comes amid heightened scrutiny of AI companies and their billion-dollar valuations. Musk’s legal action not only seeks financial restitution but also challenges the ethical decisions behind OpenAI’s rapid commercialization.
Microsoft’s Role in the Dispute
Microsoft owns roughly 27% of the restructured OpenAI Group PBC, making it a central figure in Musk’s claims. Musk argues that OpenAI’s alignment with Microsoft has significantly contributed to his perceived losses. While Microsoft has declined to comment on the lawsuit, OpenAI has publicly framed Musk’s actions as part of an ongoing harassment campaign, dismissing the claims as legally unfounded.
The stakes of the lawsuit are substantial. If Musk succeeds, it could result in one of the largest payouts ever tied to early tech investments and reshape conversations around AI company ownership, investor rights, and corporate accountability.
Implications for AI Investors and Tech Industry
This high-profile dispute highlights tensions in the tech industry, especially around early investments in AI companies. Legal analysts suggest that the case could set precedents for how investor agreements are structured in the AI sector. Startups and investors alike are watching closely, as Musk’s claims challenge both financial practices and ethical considerations in AI development.
The case also underscores the broader debate over profit-driven AI ventures versus original non-profit intentions. Musk’s lawsuit could spark further discussions about accountability in AI commercialization, particularly for companies receiving massive corporate backing while claiming ethical responsibilities.
What Comes Next for Musk and OpenAI
The lawsuit is poised to unfold over the coming months, with both legal teams preparing extensive arguments. Musk’s pursuit of $134 billion marks one of the boldest claims in tech litigation history. Regardless of the outcome, this case highlights the complex relationship between early investors, tech giants, and the rapid growth of artificial intelligence.
As AI continues to dominate headlines, the Musk-OpenAI dispute will remain a closely watched saga, influencing investor behavior and shaping the conversation around corporate ethics in emerging technologies.
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