Elon Musk has asked a federal court to award him as much as USD$134 billion from OpenAI and Microsoft Corp (NASDAQ: MSFT), arguing he deserves the companies’ alleged wrongful gains from his early backing.
In a filing submitted Friday, Musk said OpenAI captured between USD$65.5 billion and USD$109.4 billion in value from his contributions as a co-founder. Additionally, he claimed Microsoft gained between USD$13.3 billion and USD$25.1 billion from those same efforts.
OpenAI rejected the demand, calling it unserious and part of what it described as a harassment campaign. Meanwhile, Microsoft did not respond to a request for comment outside business hours.
The filing comes ahead of a trial expected to begin in April before a jury in Oakland, California. Earlier this month, the judge ruled that Musk’s claims can proceed to trial. Musk left OpenAI in 2018 and now runs xAI, a rival artificial intelligence company. However, he argues OpenAI abandoned its original nonprofit mission by restructuring into a for-profit entity.
“Without Elon Musk, there’d be no OpenAI. He provided the bulk of the seed funding, lent his reputation, and taught them all he knows about scaling a business,” said Steven Molo, Musk’s lead trial lawyer.
According to the filing, Musk contributed about USD$38 million, representing roughly 60 per cent of OpenAI’s early seed funding. Additionally, he said he recruited staff, connected founders with key contacts, and lent credibility during the startup’s formation. Musk’s lawyers argued those actions resemble an early startup investment that later produces outsized returns. Consequently, they claim the gains earned by OpenAI and Microsoft far exceed Musk’s original financial input.
The filing states that financial economist C. Paul Wazzan calculated the alleged gains as an expert witness. Furthermore, Musk reserved the right to seek punitive damages and unspecified penalties if a jury finds liability.
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OpenAI and Microsoft challenge the damages
He also asked the court to consider a possible injunction, although the filing did not explain what restrictions he seeks. However, OpenAI and Microsoft moved quickly to challenge the damages analysis. In a separate filing Friday, the companies asked the judge to limit or exclude Wazzan’s testimony. They argued the calculations rely on unverifiable assumptions and unprecedented methods.
Additionally, the companies said the approach could mislead jurors into supporting an implausible transfer of billions. They characterized the request as an attempt to move assets from a nonprofit to a former donor turned competitor. OpenAI reiterated that it views the lawsuit as baseless and motivated by competitive interests. Microsoft’s lawyers, meanwhile, said no evidence shows the company aided or encouraged any alleged misconduct.
The companies also disputed the broader damages ranges cited by Musk. Further, they argued that estimating gains tied to early support ignores years of independent development. Musk countered that his role during OpenAI’s formative period materially shaped its trajectory. Subsequently, he maintained that equity-like rewards should follow contributions that created lasting value.
The case now heads toward jury trial, with both sides preparing to contest the meaning of OpenAI’s founding mission.
