Is Musk Really Seeking Up to $134bn from OpenAI and Microsoft for Fraud?
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Synopsis
Elon Musk aims to secure billions in damages from OpenAI and Microsoft, alleging fraudulent actions that deviated from nonprofit values. As legal battles unfold, the implications of these claims could reshape the AI landscape. This story delves into Musk's allegations and the responses from the tech giants involved.
Key Takeaways
- Elon Musk is pursuing a lawsuit against OpenAI and Microsoft for alleged fraud.
- The damages sought range from $79 billion to $134 billion.
- Musk's claims are based on contributions made during the founding of OpenAI.
- A jury trial is set for late April in Oakland, California.
- The case could significantly impact the tech and AI landscape.
New Delhi, Jan 17 (NationPress) Elon Musk, CEO of Tesla and founder of the AI company xAI, has petitioned a US federal court to grant him $79 billion to $134 billion in damages. Musk claims that OpenAI and Microsoft deceived him by abandoning OpenAI’s original nonprofit objectives and forming a partnership with the software giant.
The demand for damages was submitted by Musk's legal team just a day after a judge dismissed OpenAI and Microsoft’s last attempt to escape a jury trial, which is set for late April in Oakland, California, as reported by various sources.
The court filing referenced calculations asserting Musk's entitlement to a portion of OpenAI’s current valuation of $500 billion, given his $38 million seed funding contribution during the company's inception in 2015.
“Just as an early investor in a startup might realize gains significantly larger than their original investment, the wrongful profits obtained by OpenAI and Microsoft—which Musk is now entitled to recover—far exceed Musk’s initial contributions,” the filing stated.
Legal documents indicate that Musk's team contends that OpenAI gained between $65.5 billion and $109.43 billion through wrongful means, while Microsoft accrued between $13.3 billion and $25.06 billion from Musk's financial and non-financial contributions, including advice on technical and business matters. Both OpenAI and Microsoft have rejected these allegations.
Musk stepped down from OpenAI’s board in 2018, founded his own AI venture in 2023, and initiated a lawsuit against OpenAI in 2024, disputing co-founder Sam Altman’s decision to transition the organization to a for-profit model.
OpenAI responded by stating, “Musk’s lawsuit remains unfounded, reflecting an ongoing pattern of harassment, and we are eager to demonstrate this in court,” adding, “this latest unsubstantiated demand is aimed solely at advancing this harassment campaign.”
In a related context, Musk’s AI company xAI is also pursuing legal action against Apple and OpenAI regarding the earlier incorporation of ChatGPT into Siri and Apple Intelligence as an optional feature.
Musk has claimed that Apple’s App Store policies disadvantage competitors like Grok, and this lawsuit has withstood initial attempts at dismissal.
Point of View
It's imperative to recognize the magnitude of Elon Musk's claims against OpenAI and Microsoft. This legal confrontation not only highlights the complexities of partnerships in the tech industry but also raises questions about the ethical directions of AI development. The outcomes of this case could have profound implications for all stakeholders involved.
NationPress
17/01/2026
Frequently Asked Questions
What are Elon Musk's allegations against OpenAI and Microsoft?
Musk alleges that OpenAI and Microsoft defrauded him by abandoning OpenAI's nonprofit mission and profiting from his contributions.
How much is Musk seeking in damages?
Musk is seeking damages ranging from $79 billion to $134 billion.
What was Musk's involvement with OpenAI?
Musk was a founding member of OpenAI and contributed $38 million in seed funding.
What is the status of the legal proceedings?
A jury trial is scheduled for late April in Oakland, California, following a denied bid by OpenAI and Microsoft to avoid it.
What is Musk's stance on OpenAI's current operations?
Musk opposes OpenAI's transition to a for-profit model, which he claims contradicts its original mission.
