Tesla CEO Elon Musk has requested $79 billion to $134 billion in damages from OpenAI and Microsoft, accusing them of fraud for deviating from OpenAI’s nonprofit mission. Musk’s legal team filed the damages claim following a court ruling denying OpenAI and Microsoft’s attempt to avoid a jury trial in late April in California. The filing argues that Musk is owed a portion of OpenAI’s $500 billion valuation due to his initial $38 million donation in 2015.
Musk’s side contends that OpenAI and Microsoft have gained between $65.5 billion to $109.43 billion and $13.3 billion to $25.06 billion, respectively, from his contributions, including financial support and advice. Musk, who departed OpenAI’s board in 2018, founded his own AI company in 2023 and later sued OpenAI in 2024 over its shift to a for-profit model under co-founder Sam Altman.
OpenAI responded, labeling Musk’s lawsuit as baseless and part of a harassment pattern, expressing readiness to address the claims in court. Additionally, Musk’s AI firm xAI is engaged in legal action against Apple and OpenAI regarding the integration of ChatGPT into Siri and Apple Intelligence. Musk alleges that Apple’s App Store policies unfairly impact competitors like Grok, with the lawsuit surviving initial dismissal.
