Summary:
-
Elon Musk seeks up to $134 billion in damages from OpenAI and Microsoft over company growth.
-
Musk claims his contributions account for 50-75% of OpenAI’s value, seeking “disgorgement of wrongful gains.”
-
OpenAI calls lawsuit “baseless” as Musk faces scrutiny over AI ambitions and xAI chatbot controversy.
Elon Musk is seeking as much as $134 billion in damages from OpenAI and its longtime partner Microsoft, according to a newly filed notice of remedies that outlines one of the largest damage claims ever tied to a startup dispute.
In the filing, submitted to federal court in Northern California, Musk argues that OpenAI and Microsoft were unjustly enriched after OpenAI shifted away from its nonprofit mission.
Musk claims his early contributions, including about $38 million in funding and extensive nonmonetary support, were critical to the company’s growth and current valuation. As a result, he is seeking “disgorgement of wrongful gains” rather than traditional compensatory damages.
ADVERTISEMENT
The document cites expert analysis estimating that Musk’s contributions account for 50 percent to 75 percent of OpenAI’s attributable value. Based on that estimate, Musk is seeking between $65.5 billion and $109.4 billion from OpenAI, plus an additional $13.3 billion to $25.1 billion from Microsoft, including unrealized gains tied to OpenAI’s valuation.
OpenAI has previously pushed back on Musk’s claims, calling the lawsuit “baseless” and characterizing it as a campaign of harassment. The case is currently scheduled to go to trial in April.
The legal escalation comes as Musk faces renewed scrutiny over his broader AI ambitions. His company xAI recently drew backlash after users reported that its chatbot Grok generated altered images that removed clothing from people in photos. xAI said it took steps to address the issue after the images circulated widely online.
Together, the lawsuit and the Grok controversy underscore a turbulent moment for Musk as he positions himself as both a critic of OpenAI’s direction and a major player in the rapidly evolving AI race.
