Elon Musk sues OpenAI and Microsoft for $134bn, claims he made ChatGPT possible

Elon Musk sues OpenAI and Microsoft for $134bn, claims he made ChatGPT possible

Tech billionaire Elon Musk has launched a high-stakes legal battle against OpenAI and Microsoft, demanding a staggering $134 billion in damages. In a court filing submitted last Friday, Musk’s lawyer argued that the AI powerhouse ChatGPT would not exist without the billionaire’s early financial backing and guidance.

Musk claims OpenAI profited unfairly

The lawsuit centres on Musk’s $38 million seed investment in OpenAI back in 2015. According to the filing, OpenAI and Microsoft allegedly reaped “wrongful gains” from this support. Musk’s legal team argues that OpenAI gained between $65.5 billion and $109.4 billion from his funding, while Microsoft, now holding 27% of OpenAI shares earned between $13.3 billion and $25.1 billion.

“Without Elon Musk, there’d be no OpenAI. He provided the bulk of the seed funding, lent his reputation, and taught them all he knows about scaling a business,” said Musk’s lead lawyer, Steven Molo, referencing estimates from financial economist C. Paul Wazzan cited in the filing.

Musk, who helped co-found OpenAI and invested approximately $45 million in total, left the board in 2018 after strategic disagreements with CEO Sam Altman. Since then, he has publicly criticised OpenAI’s commercialisation efforts and its close ties with Microsoft.

OpenAI calls the claims “baseless”

OpenAI has dismissed Musk’s lawsuit as part of a “harassment campaign.” Microsoft has not commented on the compensation claims. In separate filings, the companies also sought to exclude Wazzan’s analysis, labelling it “made up” and “unverifiable.”

The dispute marks the latest twist in Musk’s contentious relationship with OpenAI. In February 2025, he offered to buy the company for $97.4 billion, aiming to counter its shift toward a for-profit model. Altman rejected the bid and mockingly suggested purchasing Musk’s social media platform, X, for $9.74 billion instead.

From SpaceX to AI supremacy

The lawsuit comes shortly after OpenAI reached a $500 billion valuation in October 2025, briefly overtaking Musk’s SpaceX as the world’s most valuable private tech company. Current and former employees sold around $6.6 billion in shares to investors, highlighting the enormous financial stakes tied to the AI giant.

Social media and tech circles have reacted with a mixture of disbelief and fascination. Many have pointed out the irony of Musk, known for his visionary investments, now claiming ownership of one of the world’s most influential AI companies.

A high-stakes courtroom battle ahead

Legal experts predict the case will hinge on how courts interpret Musk’s early involvement and the alleged “wrongful gains.” Whether Musk can claim a portion of OpenAI’s astronomical valuation remains uncertain, but the lawsuit underscores ongoing tensions in the rapidly growing AI sector, where early backers, tech titans, and investors clash over both money and influence.

For now, the world watches as Musk stakes his claim, a bold, controversial move that could reshape the narrative around one of the most transformative tech companies of the decade.

{Source: IOL}

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