Overview of the Lawsuit

For the lawsuit, billionaire Elon Musk is claiming a sum up to $134 billion, or rather $134 billion, against OpenAI and Microsoft, arguing that the two companies' gains from the wrongful act committed by Musk were the main reason for their partnership. According to a filing in federal court, Musk contends that both companies derived huge profit from his input when OpenAI was born in 2015, and now it is his turn to get the pay that is linked to their universal great valuations.

Musk's lawsuit contends that OpenAI and Microsoft must pay him a financial compensation, as they made a profit that was way above his $38 million original investment, which consisted in recruiting workers, building up the company’s reputation, and other early support.

Claims Against OpenAI and Microsoft

In legal papers, Musk's representatives referred to the calculations made by the experts that hinted:

• OpenAI's overall wealth was increased by $640 million to $1.09 billion through his involvement.

 

• Microsoft, which has about 27% ownership in OpenAI, made a profit of about $133 million to $251 million.

 

Musk's damages claim, which is supported by the figures, is as high as $134 billion, and his lawyers argue that this amount reflects the value he helped to create that was unfairly taken. The motion puts Musk in a position not just of a benefactor but rather as an early investor whose first intellectual and financial assistance should equal a share in contemporary success, much like an early investor in a startup who reaps disproportionately large returns.

Musk’s Position and Background

In 2015, a nonprofit, Musk assisted in co-founding OpenAI by providing financial and other resources. He stepped down from the board in 2018 and afterward established his own AI startup, xAI, that directly competes with OpenAI’s offerings.

The lawsuit revolves around the argument that OpenAI abandoned its initial non-profit purpose, which Musk disapproves of, and that this alteration in conjunction with the subsequent commercial triumph, has wrongfully enriched Microsoft and OpenAI at his cost.

Responses and Court Plans

OpenAI has labeled the lawsuit from Musk as “groundless” and has categorized it as part of the harassment that it perceives, thus contesting both the validity of his claims and the method of the financial estimations. Microsoft has mentioned that there is no proof it was “helping and facilitating” OpenAI in a manner that would cause it to be liable.

A judge in Oakland, California has given the green light to the case to be heard by a jury, with a trial anticipated in April 2026. Following the course of the trial, Musk might also request punitive damages or other legal remedies.

Context and Implications

The $134 billion amount is very noticeable in the light of Musk’s personal wealth which is said to be $700 billion, thus making him the richest man on the planet. But the demand proves the problem's magnitude and its possible impacts on the issue of valuation of early investments in tech startups legally.

The controversy is drawing a lot of attention because it is between the biggest companies in AI and the outcome could determine the position of tech startups in terms of founders’ rights and financial claims when early backers create or play a role in the making of revolutionary technology companies.