ASIATODAY.ID, WASHINGTON – Elon Musk has launched a massive legal assault against OpenAI and Microsoft, demanding $134 billion in damages and accusing both companies of reaping “wrongful gains” from his early financial backing of the AI pioneer.
In a court filing submitted on Friday, Musk claims he was effectively defrauded of the seed funding he provided when OpenAI was founded in 2015. The billionaire argues that his early contributions entitle him to a significant share of the company’s current $500 billion valuation, now the highest among private technology firms worldwide.
According to the filing, OpenAI allegedly generated between $65.5 billion and $109.4 billion in value directly linked to Musk’s early funding and involvement.
Microsoft, which began investing in OpenAI in 2019 and currently holds a 27% stake in OpenAI Group PBC, is accused of gaining between $13.3 billion and $25.1 billion from the same foundation.
“Without Elon Musk, there would be no OpenAI,” said Musk’s lead trial lawyer, Steven Molo.
“He provided the bulk of the seed capital, lent his reputation, and shared his expertise on scaling technology businesses.” The valuation estimates cited in the lawsuit were prepared by financial economist C. Paul Wazzan, who was named as an expert witness.
OpenAI has dismissed Musk’s claims as “baseless”, accusing the Tesla and SpaceX CEO of conducting a campaign of “harassment”. Microsoft declined to comment on the compensation demand.
In a separate filing, OpenAI and Microsoft jointly urged the court to exclude Wazzan’s financial analysis, labeling it “fabricated” and “unverifiable.”
Musk co-founded OpenAI in 2015 and invested approximately $45 million before leaving the board in 2018 amid strategic disputes with CEO Sam Altman. Since then, he has emerged as one of OpenAI’s most outspoken critics, particularly over its transition from a nonprofit mission to a commercially driven enterprise closely aligned with Microsoft.
In February 2025, Musk offered $97.4 billion to buy OpenAI in an attempt to block its shift toward a for-profit model. Altman publicly rejected the bid and sarcastically countered by suggesting Musk purchase his social media platform X for $9.74 billion.
OpenAI overtook Musk’s SpaceX in October to become the world’s most valuable private tech company after reaching a $500 billion valuation, following the sale of roughly $6.6 billion worth of shares by current and former employees to a consortium of investors. (RT)
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