Musk Seeks Up to $134 Billion from OpenAI, Microsoft in Fraud Lawsuit | Quick Digest
Elon Musk is seeking up to $134 billion in damages from OpenAI and Microsoft, alleging they defrauded him by abandoning the AI company's original non-profit mission. A federal judge has ordered the high-stakes lawsuit to proceed to a jury trial in late April 2026.
Elon Musk claims OpenAI abandoned its non-profit, open-source founding mission.
Musk is seeking damages ranging from $79 billion to $134 billion from OpenAI and Microsoft.
A federal judge has cleared the lawsuit for a jury trial in April 2026.
OpenAI and Microsoft deny allegations, calling the lawsuit "baseless harassment.
Musk co-founded OpenAI in 2015 but left in 2018 due to commercialization concerns.
The lawsuit involves Musk's initial $38 million seed money contribution to OpenAI.
Elon Musk is demanding damages ranging from $79 billion to $134 billion from OpenAI and Microsoft, alleging that they defrauded him by abandoning the artificial intelligence company's foundational non-profit mission. The high-profile lawsuit, initially filed in 2024, centers on Musk's accusation that OpenAI, which he co-founded in 2015, shifted from its original goal of developing AI for the benefit of humanity as an an open-source, non-profit entity to a for-profit model driven by commercial interests. Musk reportedly contributed approximately $38 million in seed funding to OpenAI, believing it would remain a charitable organization.
A significant development in the case occurred when a federal judge in Oakland, California, rejected final bids by both OpenAI and Microsoft to dismiss the lawsuit, ruling that it should proceed to a jury trial scheduled for late April 2026. This decision keeps alive Musk's claims of breach of contract and fiduciary duty. OpenAI and Microsoft have vehemently denied Musk's allegations, labeling his lawsuit as "baseless" and part of an "ongoing pattern of harassment" aimed at hindering their progress.
Musk's legal team, citing calculations by a financial economist expert witness, C. Paul Wazzan, argues that he is entitled to a share of OpenAI's current estimated $500 billion valuation, given the "wrongful gains" made by OpenAI and Microsoft due to his early support. OpenAI, however, has maintained that Musk was aware of and even involved in discussions about a for-profit transition during the company's early years, although the interpretations of these discussions vary. The outcome of this trial could have significant implications for the future of AI development and the governance of major tech companies.
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