NAIROBI, Kenya- Elon Musk is escalating his legal war with OpenAI and Microsoft, now seeking up to $134 billion (about Sh17.8 trillion) in damages, arguing that the two companies profited massively from his early backing of OpenAI while sidelining him from its success.
According to court filings submitted on Friday ahead of a jury trial, Musk claims OpenAI alone gained between $65.5 billion and $109.4 billion, while Microsoft benefited by as much as $25.1 billion, all stemming from contributions he made while co-founding the artificial intelligence startup in 2015.
‘Without Musk, There Would Be No OpenAI’
Musk’s legal team argues that his role went far beyond writing cheques.
“Without Elon Musk, there’d be no OpenAI,” his lead trial lawyer Steven Molo said, noting that Musk provided the bulk of early seed funding, recruited key talent, shared expertise on scaling companies, and lent credibility to what was then an untested research venture.
Court documents show Musk contributed about $38 million, accounting for roughly 60pc of OpenAI’s early funding, and actively helped shape the organisation before leaving in 2018.
Musk now claims those early efforts generated “wrongful gains” for OpenAI and Microsoft — gains he says he is legally entitled to recover, just as early startup investors often reap outsized returns.
OpenAI and Microsoft Push Back Hard
OpenAI has dismissed Musk’s claim as an “unserious demand,” accusing the billionaire of using the courts to harass the company as he builds xAI, a rival to ChatGPT.
Microsoft, which has poured billions into OpenAI and integrated its technology across its products, has denied any wrongdoing.
In separate filings, both companies urged the court to limit testimony from Musk’s expert witness, calling the damages calculations “made up,” “unverifiable,” and legally implausible.
They argue the case seeks an unprecedented transfer of billions from a nonprofit entity to a former donor who is now a direct competitor in the AI race.
Trial Set as AI Power Struggle Intensifies
At the heart of the dispute is Musk’s claim that OpenAI abandoned its founding mission — to develop artificial intelligence for the public good — after restructuring into a for-profit model and deepening its partnership with Microsoft.
A judge in Oakland, California, has ruled that the case will go before a jury, with the trial expected to begin in April.
If Musk prevails, he may pursue not only damages but also punitive penalties and court-ordered injunctions that could reshape OpenAI’s operations.
As the global AI arms race accelerates, the lawsuit underscores a deeper battle over who controls the future of artificial intelligence — and who ultimately profits from it.
