Tesla and SpaceX chief executive Elon Musk has escalated his legal battle against OpenAI and its strategic partner Microsoft, seeking between $79 billion and $134 billion in damages. The lawsuit alleges that OpenAI defrauded Musk by abandoning its original nonprofit mission in favor of commercial interests.
According to a report first published by Bloomberg, the damages estimate was presented as part of Musk’s ongoing case, which claims that OpenAI’s current structure and business operations violate the founding principles under which the organization was created.
Musk, who co-founded OpenAI in 2015, argues that the company was originally established to develop artificial intelligence for the benefit of humanity, without profit motives. He contends that OpenAI’s transition toward a for-profit model, alongside its close relationship with Microsoft, represents a fundamental breach of that mission.
The damages calculation was prepared by C. Paul Wazzan, a financial economist specializing in valuation and damages assessments in complex commercial litigation. Wazzan is serving as an expert witness in the case and has extensive courtroom experience, having been deposed nearly 100 times and testified in trials more than a dozen times.
According to the expert analysis, the claimed damages are based on the estimated value OpenAI would have generated had it remained aligned with its nonprofit mandate. The figures also reflect the alleged economic benefit transferred to Microsoft through its deep financial and technological partnership with OpenAI.
Microsoft has invested billions of dollars into OpenAI and integrated its AI models into key products, including enterprise software and cloud services. Musk’s legal team argues that this relationship effectively converted OpenAI into a profit-driven entity controlled by corporate interests, contradicting its original charter.
OpenAI has previously rejected Musk’s claims, stating that its organizational structure is necessary to fund the development of advanced artificial intelligence responsibly. The company has also emphasized that its capped-profit model was designed to balance innovation, safety, and sustainability.
The lawsuit is being closely watched across the global tech industry, as it raises broader questions about AI governance, nonprofit accountability, and the role of major corporations in shaping the future of artificial intelligence.
If the court accepts Musk’s valuation arguments, the case could become one of the most expensive technology-related legal disputes in history. Legal analysts note that even a partial ruling in Musk’s favor could have far-reaching implications for AI companies operating under hybrid nonprofit and commercial models.
As artificial intelligence continues to reshape industries worldwide, the outcome of this dispute may influence how future AI organizations are structured, funded, and regulated.
