Elon Musk has filed a high-profile lawsuit seeking up to $134 billion from OpenAI and Microsoft, claiming the tech giants received “wrongful gains” from his early contributions to the artificial intelligence startup. The legal action comes ahead of a federal court trial in Oakland, California, set to begin in April.

Musk’s Claims Against OpenAI and Microsoft

Musk, who co-founded OpenAI in 2015 before leaving the organization in 2018, alleges that both companies profited enormously from his early support, while failing to acknowledge his contributions. According to court filings:

• OpenAI earned between $65.5 billion and $109.4 billion linked to Musk’s early involvement.
• Microsoft gained between $13.3 billion and $25.1 billion from the collaboration.

The lawsuit asserts that Musk provided roughly $38 million, representing 60% of OpenAI’s initial seed funding, in addition to helping recruit staff, connect founders with key contacts, and lend credibility to the new AI venture.

“Just as an early investor in a startup may realize gains many orders of magnitude greater than the 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 states.

Musk may also seek punitive damages or injunctions if the jury rules in his favor, although the filing did not specify what form any injunction might take.

Background: OpenAI, Microsoft, and Musk

OpenAI, operator of the popular ChatGPT AI chatbot, transitioned from a nonprofit organization to a for-profit entity, a move Musk alleges violated OpenAI’s original mission. Microsoft has invested heavily in OpenAI and integrated its technology into its products, including Microsoft Copilot and Azure AI services.

Musk, now CEO of xAI, which operates the competitor AI chatbot Grok, claims the restructuring and commercialization of OpenAI’s technology ignored the contributions of early backers like him.

OpenAI has described Musk’s lawsuit as “baseless” and part of an ongoing harassment campaign. A Microsoft attorney has stated there is no evidence the company “aided and abetted” OpenAI in any wrongdoing.

Legal Disputes Over Damages

Both OpenAI and Microsoft filed a response on Friday challenging Musk’s claims. They requested the court to limit what Musk’s expert witness, financial economist C. Paul Wazzan, may present to the jury, labeling his analysis as “made up,” “unverifiable,” and “unprecedented.”

The companies argue that Wazzan’s calculations attempt an implausible transfer of billions from a nonprofit to a former donor-turned-competitor, and contend that his methodology is unreliable and could mislead jurors.

Musk’s filing, however, relies heavily on Wazzan’s evaluation of the economic value of Musk’s contributions and the subsequent growth and revenue generated by both OpenAI and Microsoft from AI technology that originated with Musk’s support.

Trial Timeline and Expectations

A judge in Oakland recently ruled that a jury trial will proceed, scheduled to start in April 2026. Legal experts predict that the case could set significant precedent for disputes involving early contributions to tech startups, valuation of intellectual property, and the commercialization of nonprofit-originated projects.

If successful, Musk’s lawsuit could become one of the largest damages claims in technology history, highlighting the high stakes in the artificial intelligence industry and the growing tension between early investors and major tech corporations.

Broader Implications for AI and Tech Industry

The lawsuit comes at a time when AI is rapidly shaping global markets, with OpenAI and Microsoft at the forefront of chatbot and AI-driven productivity tools. Analysts note that the outcome could influence:

• Investor rights in AI startups
• Governance and ethical use of AI technology
• Dispute resolution for nonprofit-to-for-profit transitions
• Competitive dynamics between AI companies

As the trial approaches, attention from the tech industry, investors, and the media will intensify, with potential implications for future collaborations, AI policy, and corporate accountability.