Elon Musk Seeks Up to $134 Billion in Damages from OpenAI and Microsoft
Key Points
- Elon Musk is suing OpenAI and Microsoft for $79 billion to $134 billion in damages.
- The claim alleges OpenAI abandoned its nonprofit mission, defrauding early investors.
- Expert witness C. Paul Wazzan based the damages on Musk’s $38 million seed investment and OpenAI’s $500 billion valuation.
- Calculated wrongful gains are $65.5 billion–$109.4 billion for OpenAI and $13.3 billion–$25.1 billion for Microsoft.
- Musk’s personal fortune is estimated at around $700 billion, making him the world’s richest person.
- Tesla shareholders approved a $1 trillion pay package for Musk in November.
- OpenAI warned that Musk may make outlandish claims as the case heads to trial.
- The lawsuit will be heard in Oakland, California.
Elon Musk is pursuing a damages claim of between $79 billion and $134 billion against OpenAI and Microsoft, alleging the AI company breached its nonprofit mission and defrauded him. The figures come from expert witness C. Paul Wazzan, who based the calculation on Musk’s $38 million seed investment in OpenAI in 2015 and the company’s current $500 billion valuation. The lawsuit also targets Microsoft, which holds a 27% stake in OpenAI, for alleged wrongful gains ranging from $13.3 billion to $25.1 billion. Musk’s personal fortune is estimated at around $700 billion, and the case is set for trial in Oakland, California.
Background of the Dispute
Elon Musk, a founder of OpenAI, has filed a lawsuit seeking substantial damages from the artificial‑intelligence firm and its major investor, Microsoft. According to a Bloomberg report, Musk alleges that OpenAI abandoned its original nonprofit mission, effectively defrauding him and other early contributors.
Financial Calculations
The damages range cited in the filing is between $79 billion and $134 billion. These figures were supplied by expert witness C. Paul Wazzan, a financial economist with extensive experience in complex commercial litigation. Wazzan’s analysis starts with Musk’s initial $38 million seed donation when OpenAI was founded in 2015. He extrapolates that amount against the company’s current valuation of roughly $500 billion, which would represent a return on investment of about 3,500 times.
Wazzan further breaks down the alleged wrongful gains. For OpenAI itself, he estimates damages between $65.5 billion and $109.4 billion. For Microsoft, which owns a 27% stake in the AI firm, the calculated range is $13.3 billion to $25.1 billion. Musk’s legal team argues that, as an early startup investor, he is entitled to compensation that reflects the magnitude of the company’s growth.
Musk’s Wealth and Prior Compensation
Elon Musk’s personal fortune is reported to hover around $700 billion, making him the world’s richest individual. This wealth surpasses that of Google co‑founder Larry Page by an estimated $500 billion, according to Forbes. In a separate corporate matter, Tesla shareholders approved a $1 trillion pay package for Musk in November, which has been described as the largest corporate compensation package in history.
OpenAI’s Response and Trial Details
OpenAI has reportedly sent a warning letter to its investors and business partners, indicating that Musk may make “deliberately outlandish, attention‑grabbing claims” as the lawsuit proceeds toward trial. The case is scheduled to be heard in Oakland, California, a venue located about 15 miles east of San Francisco.
Implications
The lawsuit underscores the high‑stakes nature of early‑stage tech investments and the legal complexities that can arise when a company’s mission evolves. While the damages sought represent a fraction of Musk’s overall wealth, the case highlights ongoing tensions between founders, investors, and corporate governance in the rapidly expanding AI sector.