Musk seeks $134 billion from OpenAI and Microsoft over alleged wrongful gains

A jury will hear Elon Musk’s lawsuit seeking billions from OpenAI and Microsoft over AI profits

January 17, 2026

Musk claims AI firms profited massively from his early backing of OpenAI; jury trial set for April

Elon Musk is seeking up to $134 billion from OpenAI and Microsoft, claiming the companies earned “wrongful gains” from his early financial and strategic support of the artificial intelligence startup, according to a court filing submitted on Friday.

In the filing ahead of a jury trial, Musk alleged that OpenAI gained between $65.5 billion and $109.4 billion, while Microsoft gained between $13.3 billion and $25.1 billion, as a result of his contributions during OpenAI’s formative years beginning in 2015.

Musk, who co-founded OpenAI but exited the organisation in 2018, argues that the ChatGPT-maker later violated its original non-profit mission by restructuring into a for-profit entity. He now runs rival AI company xAI, which operates the chatbot Grok.

OpenAI has dismissed the lawsuit as “baseless” and accused Musk of pursuing a campaign of harassment. Microsoft has also denied wrongdoing, with its lawyer stating there is no evidence the company “aided and abetted” OpenAI in any alleged misconduct. Lawyers for all parties did not immediately respond to requests for comment outside business hours.

Earlier this month, a judge in Oakland, California, ruled that the case will proceed to a jury trial, which is expected to begin in April.

According to the filing, Musk contributed approximately $38 million, accounting for about 60 per cent of OpenAI’s early seed funding. He also claims to have helped recruit staff, connect founders with key industry contacts, and lend credibility to the project at a critical early stage.

“Just as an early investor in a startup company may realise gains many orders of magnitude greater than the investor’s initial investment, the wrongful gains that OpenAI and Microsoft have earned — and which Mr Musk is now entitled to disgorge — are much larger than Mr Musk’s initial contributions,” the filing stated.

The valuation of Musk’s contributions was calculated by his expert witness, financial economist C. Paul Wazzan, according to court documents.

The filing adds that Musk may seek punitive damages, additional penalties, and a possible injunction if a jury finds either company liable, though it does not specify what form such an injunction could take.

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