Key Facts
- ✓ Elon Musk is seeking between $79 billion and $134 billion in damages from OpenAI and Microsoft in a lawsuit set for a jury trial in April.
- ✓ The claim is based on allegations that Musk was defrauded of his $38 million seed investment from 2015, which he is now entitled to a share of OpenAI's $500 billion valuation.
- ✓ Financial economist C. Paul Wazzan calculated that OpenAI's alleged "wrongful gains" to Musk range from $65.50 billion to $109.43 billion.
- ✓ A separate calculation for Microsoft's alleged wrongful gains places that figure between $13.30 billion and $25.06 billion.
- ✓ The trial will take place in Oakland, California, and will hear claims that OpenAI shifted away from its original nonprofit mission.
- ✓ OpenAI has publicly countered the allegations, stating that Musk previously sought "full control" of the organization.
A High-Stakes Legal Battle
A new court filing has revealed the staggering financial stakes in the legal battle between Elon Musk and the artificial intelligence company he helped found. Musk is seeking damages in the range of $79 billion to $134 billion from OpenAI and its partner, Microsoft.
The claim centers on allegations that Musk was defrauded when he contributed seed money to OpenAI in 2015. The details were disclosed by Musk's lawyer in a filing ahead of a high-stakes jury trial scheduled for April in Oakland, California.
The Core of the Dispute
The lawsuit, which names OpenAI's CEO Sam Altman and president Greg Brockman as key defendants, stems from a fundamental disagreement over the company's direction. Musk alleges that OpenAI misled him by shifting away from its original core mission to remain a nonprofit organization.
The document states that Musk was defrauded of the $38 million in seed money he donated to help found OpenAI in 2015. His legal team argues that he is now entitled to a percentage of OpenAI's current valuation, which is estimated at $500 billion.
Can't wait to start the trial. The discovery and testimony will blow your mind.
Musk expressed his anticipation for the proceedings on his social media platform, X, signaling his confidence in the case's outcome.
"Can't wait to start the trial. The discovery and testimony will blow your mind."
— Elon Musk, via X
Calculating Damages
The specific damage figures were calculated by C. Paul Wazzan, an expert witness identified in the filing as a financial economist with decades of experience. His analysis breaks down the alleged "wrongful gains" into distinct categories.
According to Wazzan's calculation, Musk should receive between $65.50 billion and $109.43 billion from OpenAI. A separate calculation for Microsoft's alleged wrongful gains places that figure between $13.30 billion and $25.06 billion.
The total potential award, therefore, falls within the previously stated range of $79 billion to $134 billion, representing one of the most significant corporate lawsuits in recent history.
OpenAI's Rebuttal
OpenAI has publicly defended itself against Musk's allegations. In a blog post titled "The truth Elon left out," the company provided commentary on recently unsealed court documents, presenting a different narrative of the events.
The blog post alleges that Musk's motivations were different from what he has claimed. It states that Musk wanted "full control" of OpenAI, citing that he had been "burned by not having it in the past."
Furthermore, the post claims that OpenAI's leadership was surprised when Musk suggested that his children should control Artificial General Intelligence (AGI) during conversations about succession planning. These statements are aimed directly at the heart of Musk's lawsuit.
What Comes Next
The legal proceedings are now moving toward a critical juncture. A jury trial is set for April in Oakland, California, where both sides will present their evidence and arguments before a panel of citizens.
During the trial, the court will examine the details of the 2015 agreement, the subsequent changes to OpenAI's structure, and the financial calculations presented by expert witnesses. The outcome could have profound implications for the future of AI development and corporate governance.
As the trial date approaches, the public dispute between Musk and OpenAI leadership continues to unfold, with both sides using court documents and public statements to frame the narrative in their favor.
Key Takeaways
This lawsuit represents a dramatic escalation in the long-running feud between Elon Musk and OpenAI. The sheer scale of the financial demand—up to $134 billion—underscores the immense value now associated with the AI sector.
The case hinges on complex questions of corporate mission, fiduciary duty, and the interpretation of early founding agreements. The jury's decision in April will be closely watched by the entire technology industry.
Ultimately, the trial will determine whether Musk's claims of fraud are valid and if he is indeed entitled to a share of the company's explosive growth.
