Is Musk Demanding Up to $134bn from OpenAI and Microsoft Over Fraudulent Partnership?
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Synopsis
Elon Musk has filed a significant lawsuit against OpenAI and Microsoft, claiming fraud in their partnership. With potential damages reaching up to $134 billion, this case could redefine the landscape of AI and venture capital. Stay tuned as we delve into the implications of Musk's legal battle.
Key Takeaways
- Musk is demanding significant damages from OpenAI and Microsoft, alleging fraud.
- The lawsuit could impact the future of AI partnerships.
- OpenAI and Microsoft have denied the allegations.
- Musk has a history with OpenAI, having left its board in 2018.
- His firm xAI is also involved in another lawsuit against Apple.
New Delhi, Jan 17 (NationPress) Elon Musk, the CEO of Tesla and founder of the AI company xAI, has petitioned a federal court in the United States for damages ranging from $79 billion to $134 billion. He claims that OpenAI and Microsoft have committed fraud by forsaking OpenAI's original nonprofit mission and entering a partnership with the tech giant.
This request for damages was submitted by Musk's legal team shortly after a judge dismissed OpenAI and Microsoft's last attempt to evade a jury trial set for late April in Oakland, California, as reported by various sources.
The documentation presented argues that Musk deserves a portion of OpenAI's current $500 billion valuation, given that he contributed $38 million in seed funding during the company’s inception in 2015.
“Much like an early investor in a startup may see returns far exceeding their initial investment, the unjust profits that OpenAI and Microsoft have accrued — which Musk is now entitled to reclaim — are substantially greater than Musk’s original contributions,” the legal filings state.
As per the court documents, Musk's legal representatives contend that OpenAI gained between $65.5 billion and $109.43 billion through alleged wrongful actions, and Microsoft accrued from $13.3 billion to $25.06 billion from Musk’s financial support and other contributions, which included technical and strategic advice. Both OpenAI and Microsoft have refuted these claims.
Musk departed from OpenAI’s board in 2018, founded his own AI enterprise in 2023, and initiated a lawsuit against OpenAI in 2024, contesting co-founder Sam Altman's decision to transform the organization into a for-profit business.
OpenAI responded by stating, “Musk’s lawsuit is unfounded and represents a continuation of his harassment campaign, and we are eager to present our case at trial,” further remarking that “this latest demand is merely a tactic to further this harassment.”
In addition, Musk’s AI company xAI has also filed a lawsuit against Apple and OpenAI regarding the earlier integration of ChatGPT into Siri and Apple Intelligence as an optional feature.
Musk argues that Apple's App Store policies put competitors such as Grok at a disadvantage, and this lawsuit has withstood initial attempts to dismiss it.
Point of View
This lawsuit by Elon Musk against OpenAI and Microsoft raises significant questions about the ethics of partnerships in the tech industry. As an influential figure, Musk's claims highlight the complexities involved in transitioning from nonprofit to for-profit models, prompting a broader discussion about accountability and the responsibilities of tech companies.
NationPress
17/01/2026
Frequently Asked Questions
What is Elon Musk's lawsuit about?
Elon Musk is suing OpenAI and Microsoft for alleged fraud, claiming they abandoned OpenAI’s nonprofit mission for profit, seeking damages between $79 billion and $134 billion.
How much did Musk invest in OpenAI?
Musk contributed $38 million in seed funding during OpenAI's founding in 2015.
What are the alleged wrongful gains by OpenAI and Microsoft?
Musk's legal team claims OpenAI wrongfully gained between $65.5 billion and $109.43 billion, while Microsoft gained between $13.3 billion and $25.06 billion from Musk's contributions.
What was OpenAI's response to Musk's lawsuit?
OpenAI stated that Musk's lawsuit is unfounded and part of a harassment campaign, expressing eagerness to defend themselves in court.
What other legal actions is Musk involved in?
Musk's AI firm xAI is also suing Apple and OpenAI over the integration of ChatGPT into Apple's services, claiming unfair competitive practices.
