Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Uber retreats from key African markets

      Uber retreats from key African markets

      3 September 2026
      Rand Water hit by cyberattack

      Cyberattack hits South Africa’s biggest water utility

      3 September 2026
      Why electric trucks are beating electric cars to South Africa - Hiten Parmar

      Why electric trucks are beating electric cars to South Africa

      3 September 2026
      Only one in 10 township businesses sells online

      Only one in 10 township businesses sells online

      3 September 2026
      Rural South Africans should not have to trade competition for coverage - Paul Colmer

      Rural South Africans should not have to trade competition for coverage

      3 September 2026
    • World
      'This is not circular': Jensen Huang defends $3.5-billion MediaTek deal

      ‘This is not circular’: Jensen Huang defends $3.5-billion MediaTek deal

      2 September 2026
      AI-generated music banned from Australian charts

      AI-generated music banned from Australian charts

      26 August 2026
      Traders brace for a R4.5-trillion swing in Nvidia's value

      Traders brace for a R4.5-trillion swing in Nvidia’s value

      25 August 2026
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
    • In-depth
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      Winstone Jordaan on building a national EV charging network

      Winstone Jordaan on building a national EV charging network

      2 September 2026
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      14 August 2026
      Meet the CIO | Discovery's Derek Wilcocks on AI, guardrails and growth

      Meet the CIO | Derek Wilcocks on how AI personalised Vitality

      13 August 2026
      TCS | Money just became native to the internet - Steven Boykey Sidley

      TCS | Money just became native to the internet – Steven Boykey Sidley

      12 August 2026
    • Opinion
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      South African tech’s compounding debt problem

      29 July 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      Best network, worst vibes: the puzzle of SA telecoms

      20 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » AI and machine learning » Elon Musk demands billions from OpenAI in explosive lawsuit

    Elon Musk demands billions from OpenAI in explosive lawsuit

    Elon Musk is suing OpenAI and Microsoft, arguing their profits stem from his early funding and support.
    By Agency Staff18 January 2026
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Elon Musk demands billions from OpenAI in explosive lawsuit
    Elon Musk. Evelyn Hockstein/Reuters

    Elon Musk is seeking up to US$134-billion (R2.2-trillion) from OpenAI and Microsoft, saying he deserves the “wrongful gains” that they received from his early support, according to a court filing on Friday.

    OpenAI gained between $65.5-billion and $109.4-billion from the billionaire entrepreneur’s contributions when he was co-founding what was then a start-up from 2015, while Microsoft gained between $13.3-billion and $25.1-billion, Musk said in the federal court filing ahead of his trial against the two companies.

    “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. A preeminent expert quantified the value of that,” Musk’s lead trial lawyer Steven Molo said in a statement.

    He provided the bulk of the seed funding, lent his reputation and taught them all he knows about scaling a business

    OpenAI in a statement called it an “unserious demand” by Musk and part of what it said was his “harassment campaign” against OpenAI. Microsoft did not respond to a request for comment outside business hours on the amount of compensation Musk is seeking.

    During the week, OpenAI called the lawsuit “baseless” and part of a “harassment” campaign by Musk. A Microsoft lawyer has said there is no evidence that the company “aided and abetted” OpenAI. The two companies challenged Musk’s damages claims in a separate filing on Friday.

    Musk, who left OpenAI in 2018 and runs xAI with its competitor chatbot Grok, alleges that ChatGPT operator OpenAI violated its founding mission in a high-profile restructuring to a for-profit entity.

    A judge in Oakland, California ruled this month that a jury will hear the trial, expected to start in April.

    ‘Implausible’

    Musk’s filing says he contributed about $38-million, 60% of OpenAI’s early seed funding, helped recruit staff, connect the founders with contacts and lend credibility to the project when it was created.

    “Just as an early investor in a start-up 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,” Musk argues.

    Read: Starlink, Musk face rising political resistance in South Africa

    The filing says Musk’s contributions to OpenAI and Microsoft were calculated by his expert witness, financial economist C Paul Wazzan.

    Musk may seek punitive damages and other penalties, including a possible injunction, if the jury finds either company liable, the filing says, without specifying what form any injunction might take.

    OpenAI

    In their own filing, OpenAI and Microsoft asked the judge to limit what Musk’s expert may present to jurors, arguing his analysis should be excluded as “made up”, “unverifiable” and “unprecedented”, and as seeking an “implausible” transfer of billions from a non-profit to a former donor-turned-competitor.

    The companies also disputed Musk’s damages figures more broadly, saying the expert’s approach is unreliable and could mislead the jury.  — Bipasha Dey, with Mike Scarcella and Abu Sultan, (c) 2026 Reuters

    Get breaking news from TechCentral on WhatsApp. Sign up here.

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Elon Musk Microsoft OpenAI xAI
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSouth Africa is running out of software developers
    Next Article Vodacom, Maziv deal rewrites South Africa’s open-access rulebook

    Related Posts

    'This is not circular': Jensen Huang defends $3.5-billion MediaTek deal

    ‘This is not circular’: Jensen Huang defends $3.5-billion MediaTek deal

    2 September 2026
    New OpenAI model can find and exploit unknown security flaws on its own

    New OpenAI model can find and exploit unknown security flaws on its own

    2 September 2026
    China is rewriting the rules of open-source software

    China is rewriting the rules of open-source software

    1 September 2026
    Company News
    How to build a security operations centre that actually works - Kaspersky

    How to build a security operations centre that actually works

    3 September 2026
    Paratus Uganda first to market with Starlink service

    Paratus Uganda first to market with Starlink service

    2 September 2026
    Solid8 brings AlgoSec Horizon to Southern Africa - Simone Santana

    Solid8 brings AlgoSec Horizon to Southern Africa

    1 September 2026
    Opinion
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    The most dangerous customer is the quiet one

    10 August 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Uber retreats from key African markets

    Uber retreats from key African markets

    3 September 2026
    Rand Water hit by cyberattack

    Cyberattack hits South Africa’s biggest water utility

    3 September 2026
    Why electric trucks are beating electric cars to South Africa - Hiten Parmar

    Why electric trucks are beating electric cars to South Africa

    3 September 2026
    Only one in 10 township businesses sells online

    Only one in 10 township businesses sells online

    3 September 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}