Musk Demands Up to $134 Billion from OpenAI and Microsoft Over Alleged Nonprofit Mission Betrayal

Jan 20, 2026
TechCrunch
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Summary

Elon Musk demands up to $134 billion from OpenAI and Microsoft, claiming the AI company defrauded him by abandoning its nonprofit mission after he provided $38 million in seed funding and early technical expertise, while OpenAI dismisses the lawsuit as harassment ahead of April's trial.

Key Points

  • Musk seeks $79-134 billion in damages from OpenAI and Microsoft, claiming the AI company defrauded him by abandoning its nonprofit mission after his $38 million seed donation in 2015
  • Expert witness calculates Musk deserves a hefty portion of OpenAI's $500 billion valuation based on his early financial contributions and technical expertise provided to the startup
  • OpenAI characterizes the lawsuit as harassment rather than legitimate grievance, noting Musk's $700 billion fortune makes the demanded payout relatively modest, with trial set for April in Oakland

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