Musk said it was his share as an early co-founder of OpenAI

Elon Musk

Musk seeks $134 billion in damages from OpenAI and Microsoft

Elon Musk is seeking up to $134 billion in damages from OpenAI and Microsoft, claiming he is entitled to "unjust profits" the companies made from his early support of the AI ​​startup, according to a court filing.

In the document filed with federal court before his trial against the two companies begins, Musk said OpenAI earned between $65.5 billion and $109.4 billion since 2015 from his contributions when he co-founded the company, while Microsoft earned between $13.3 billion and $25.1 billion.

OpenAI described the lawsuit as "baseless" and part of a "harassment" campaign by Musk. A Microsoft lawyer said there was no evidence that the company "aided and abetted OpenAI," according to Reuters. Both companies challenged Musk's claims for damages in a separate filing on Friday.

Musk, who left OpenAI in 2018 and now runs the AI ​​company XAI along with the rival chatbot Grok, alleges that OpenAI—the developer of ChatGBT—violated its founding mission by undergoing a major restructuring into a for-profit entity. A judge in Oakland, California, ruled this month that the case will go to trial before a jury, with the trial expected to begin in April.

Musk’s filing indicates that he contributed approximately $38 million, or 60%, of OpenAI’s initial funding. He also helped with staffing, connected the founders with key contacts, and provided the project with legitimacy at its inception.

Musk stated, “Just as an early investor in a startup can earn many times more than their initial investment, the illicit profits generated by OpenAI and Microsoft—which Mr. Musk is now entitled to recover—far exceed Mr. Musk’s initial contributions.”

The filing states that Musk’s contributions to OpenAI and Microsoft were calculated by his financial economist, C. Paul Wazan. It indicates that Musk may seek punitive damages and other penalties, including a possible injunction, if a jury finds either company guilty, though the form of such an injunction is not specified.

In their filing, OpenAI and Microsoft asked the judge to limit what Musk's expert could present to the jury, arguing that his analysis should be disqualified because it was "fabricated," "unverifiable," and "unprecedented," and sought to "unreasonably" transfer billions of dollars from a nonprofit to a former donor who had become a competitor. 

The companies also objected to the damages figures Musk presented more broadly, saying the expert's methodology was unreliable and could mislead the jury.