Musk indicated that OpenAI, which originally positioned itself as a non-profit entity, abandoned that principle by partnering with Microsoft. OpenAI responded that Musk himself previously proposed the company transition to a commercial model.
American entrepreneur Elon Musk filed a lawsuit against OpenAI and Microsoft, demanding the companies pay him compensation ranging from $79 billion to $134 billion, according to the suit publicized by Reuters.
Musk asserts that OpenAI, initially positioned as a non-profit, abandoned those guidelines, including through its alliance with Microsoft.
In the plaintiff’s view, OpenAI’s earnings were secured thanks to his crucial contribution to the creation and growth of OpenAI. This contribution is valued both monetarily and intangibly—by attracting key personnel, sharing knowledge, and providing his reputation and connections.
To estimate the amount of illicit gains, Musk engaged an expert opinion—financial economist Paul Vazzana. Using financial models and based on his venture investing background, he calculated that Musk’s input constitutes 50 to 75% of the current value of the $500 billion non-profit fund OpenAI. According to Musk’s statement, during the period since 2015, when he was a co-founder of OpenAI, the firm received contributions from him totaling between $65.5 billion and $109.4 billion. Microsoft, meanwhile, invested between $13.3 billion and $25.1 billion into OpenAI.
Musk served as co-chair of OpenAI alongside its current CEO, Sam Altman. The company was established in 2015. Musk departed the OpenAI board in 2018. Five years later, he founded his own artificial intelligence firm, xAI, and in 2024 initiated legal action against Altman. The core of the dispute involved Altman’s business plans for company governance, evidenced in part by the collaboration with Microsoft.
Musk’s company, xAI, develops the Grok chatbot, which competes with OpenAI’s ChatGPT.
“Just as an early startup investor might see returns many times their initial outlay, the wrongfully obtained profits that OpenAI and Microsoft have earned and that Mr. Musk is now entitled to reclaim far exceed Mr. Musk’s initial investment,” stated Musk’s attorney, Stephen Mollo, as reported by Bloomberg.
In its rebuttal statement to Musk, OpenAI asserted that in 2017, they negotiated with him about shifting to a commercial structure, but these discussions ceased when OpenAI declined to grant him full authority and rejected a merger proposition with Tesla. Following his departure, the organization was obliged to independently seek billion-dollar investments, the company’s press service noted. Ultimately, OpenAI was structured as an entity operating for public benefit, yet overseen by a non-profit board.
The company also observed that this lawsuit is Musk’s fourth attempt to “hinder the progress” of OpenAI and boost his own xAI project, and that he systematically misrepresents facts as part of this strategy. “Elon did not believe OpenAI should remain solely a non-profit organization. <…> He agreed that OpenAI required both a non-profit and a commercial structure—the very structure OpenAI has today, and the reason Elon is now suing OpenAI,” the company’s statement read.
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