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Home > Synthesis

Elon Musk Sues OpenAI and Microsoft for $134 Billion, Alleging "Deception" and "Broken Promises"

Eunsil Ju Reporter / Updated : 2026-01-18 13:35:43
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SAN FRANCISCO – Elon Musk, CEO of SpaceX and xAI, has intensified his legal battle against OpenAI and its partner Microsoft, seeking damages of up to $134 billion (approx. 200 trillion KRW).

According to court documents filed on the 17th, Musk’s legal team alleges that OpenAI and its CEO, Sam Altman, breached their foundational agreement to remain a non-profit, open-source entity. Musk claims he was "deceived" into donating approximately $38 million during the company’s inception in 2015 under the pretense that the organization would develop AI for the benefit of humanity, rather than for shareholder profit.

The lawsuit contends that OpenAI’s shift toward a commercial model, heavily funded by Microsoft, constitutes a betrayal of its original mission. Musk's legal team is now claiming a significant portion of OpenAI’s current valuation—estimated at $500 billion—as rightful compensation. Based on estimates by financial economist C. Paul Wazzan, the suit calculates OpenAI’s "unjust enrichment" at $65.5 billion to $109.4 billion, with Microsoft’s share estimated between $13.3 billion and $25.1 billion.

In addition to compensatory damages, Musk is also seeking punitive damages against the defendants.

In response, OpenAI issued a sharp rebuttal, labeling the lawsuit as "baseless and persistent harassment." A spokesperson for the company stated they look forward to proving their case in court and dismissed Musk's claims as an attempt to undermine a competitor.

This escalation marks a new chapter in the ongoing feud between Musk and his former partners since he departed the OpenAI board in 2018 to later launch his own AI venture, xAI.

[Copyright (c) Global Economic Times. All Rights Reserved.]

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Eunsil Ju Reporter
Eunsil Ju Reporter

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