Elon Musk Demands $134 Billion In Damages From OpenAI and Microsoft

Elon Musk has significantly escalated his legal battle against OpenAI and Microsoft by filing a damages request for up to $134 billion. In court documents filed on Friday, January 16, 2026, Musk’s legal team argued that the billionaire is entitled to “disgorge” the wrongful gains both companies earned from his early financial and reputational contributions.

Musk alleges that OpenAI, which he co founded in 2015, defrauded him by abandoning its nonprofit mission in favor of a multibillion dollar commercial partnership with Microsoft.

The requested damages are divided into two major claims. Musk is seeking between $65.5 billion and $109.4 billion from OpenAI and between $13.3 billion and $25.1 billion from Microsoft. His lead trial lawyer, Steven Molo, stated that Musk provided 60% of the company’s early seed funding and essential expertise in scaling technology businesses.

The filing argues that just as an early investor in a startup realizes gains orders of magnitude greater than their initial stake, Musk deserves a slice of OpenAI’s current $500 billion valuation because his “halo effect” made the company’s success possible.

OpenAI has dismissed the demand as “unserious” and part of a “harassment campaign” intended to slow down its development while Musk builds his rival AI company, xAI. The company recently released internal blog posts and emails suggesting that Musk himself once advocated for a for profit structure, provided he could maintain majority control.

Microsoft has also denied the allegations, stating there is no evidence that it “aided or abetted” any breach of contract. A federal judge in Oakland has ruled that a jury will hear the case, with the high stakes trial currently scheduled to begin in late April 2026.