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    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
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    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

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