Elon Musk is seeking billions in damages in a lawsuit involving OpenAI and Microsoft.
Elon Musk is seeking between $79 billion and $134 billion in damages from OpenAI and its major partner Microsoft, according to a report first published by Bloomberg. Musk claims that OpenAI abandoned its original nonprofit mission, resulting in financial harm to him as a co-founder.
The proposed damages figure comes from expert witness C. Paul Wazzan, a financial economist known for handling valuation disputes in complex commercial litigation. Court records show that Wazzan has been deposed nearly 100 times and has testified in more than a dozen major trials involving high-value claims.
Wazzan’s analysis suggests that Musk deserves a significant share of OpenAI’s estimated $500 billion valuation. The calculation is based on Musk’s $38 million seed funding when OpenAI was founded in 2015, along with his early technical guidance and business input. According to the analysis, that original contribution would translate into a return of more than 3,500 times the initial investment.
The expert report estimates that OpenAI gained between $65.5 billion and $109.4 billion through actions described as wrongful. It also claims Microsoft gained between $13.3 billion and $25.1 billion through its involvement with OpenAI. Microsoft currently owns about 27 percent of the AI company.
Musk’s legal team argues that early startup investors often receive returns far exceeding their initial contributions when a company becomes highly successful. However, the scale of the damages request has led some observers to question whether the lawsuit is truly about financial compensation.
Musk’s personal net worth is estimated at around $700 billion, making him the richest individual in the world. Recent reports note that his wealth exceeds that of Google co-founder Larry Page by roughly $500 billion, according to Forbes rankings. In November, shareholders of Tesla also approved a $1 trillion compensation package for Musk, the largest executive pay deal ever approved.
Given this context, even a $134 billion payout would add only a small percentage to Musk’s overall fortune. This has reinforced OpenAI’s position that the lawsuit reflects an ongoing pattern of pressure rather than a genuine financial dispute. Reports indicate that OpenAI recently sent a letter to investors and business partners warning that Musk may continue to make dramatic public claims as the case moves toward trial in April.
The lawsuit will be heard in Oakland, California, located about 15 miles east of San Francisco.
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