Elon Musk Demands Massive Payout from OpenAI and Microsoft
Tech billionaire Elon Musk is making a bold legal move against ChatGPT-maker OpenAI and its partner Microsoft. He filed a damages request in court on Friday, January 16, 2026, demanding up to $134 billion. Musk claims the artificial intelligence company defrauded him by abandoning its original non-profit mission.
Court Filing Details Musk's Claims
The court documents reveal Musk's specific allegations. According to financial economist expert witness C. Paul Wazzan's calculations, Musk was defrauded of the $38 million in seed money he donated to OpenAI. Musk co-founded the AI research organization in 2015 but left three years later in 2018. He departed due to serious concerns about the company's commercialization and strategic direction.
Now Musk wants a significant portion of OpenAI's current $500 billion valuation. His lawyer Steven Molo explained the reasoning in the filing. "Just as an early investor in a startup company may realize 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," Molo wrote.
OpenAI and Microsoft Push Back Against Allegations
Both OpenAI and Microsoft have firmly denied Musk's accusations. OpenAI released a strong statement through Bloomberg. "Mr Musk's lawsuit continues to be baseless and a part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial. This latest unserious demand is aimed solely at furthering this harassment campaign," the company stated.
The legal action comes just one day after a federal judge rejected a final attempt by OpenAI and Microsoft to avoid a jury trial. That trial is scheduled for late April in Oakland, California.
OpenAI Warns Investors About Musk's Statements
Earlier this week, Sam Altman-led OpenAI sent a letter to investors and banking partners. The company warned them about possible exaggerated statements from Elon Musk as the lawsuit approaches trial on April 27. OpenAI expects Musk to make "deliberately outlandish, attention-grabbing claims" during this period.
Despite the warning, OpenAI expressed confidence in its legal position. "We have strong defenses and feel confident about our chances of winning the case," the company wrote in the letter, which CNBC reviewed. "Regardless, based on the record so far, we believe this case is worth no more than the $38M that Elon donated - though that is not a guarantee."
The legal battle highlights the ongoing tensions between Musk and the AI company he helped create. It also underscores the enormous financial stakes in the rapidly growing artificial intelligence industry. The case promises to be closely watched as it moves toward trial in the coming months.
