Elon Musk Demands $134 Billion in Compensation from OpenAI and Microsoft

TDT | Manama

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Tech billionaire Elon Musk has intensified his legal confrontation with AI powerhouse OpenAI and tech giant Microsoft, demanding $134 billion in compensation. Musk’s lawsuit alleges that OpenAI, an organization he helped co-found, has abandoned its original mission to operate as a non-profit for the benefit of humanity. He contends that the company has breached the contractual agreements established during its inception in 2015.

The final trial for this high-stakes lawsuit is scheduled to take place in Oakland, California, toward the end of April. This development follows a judge's recent rejection of a request by OpenAI and Microsoft to dismiss the case. Following that ruling, Musk's legal team formally notified the court of the specific compensation amount being sought. Musk points out that he contributed $38 million during OpenAI's early stages as a startup in 2015. With OpenAI’s market valuation now soaring toward $500 billion, Musk argues he is entitled to an amount proportionate to the company's current success and his initial investment.

The relationship between Musk and OpenAI has devolved from partnership to public rivalry. After co-founding the entity in 2015, Musk eventually severed ties and became a persistent critic of the organization and its CEO, Sam Altman. The friction between Altman and Musk has spanned several years, during which Musk even launched his own competing AI venture. Musk was particularly provoked by OpenAI’s deepening partnership with Microsoft, claiming it signaled a shift from a non-profit model to a profit-driven corporate structure.

OpenAI continues to deny these allegations, maintaining that it is simply reorganizing its corporate structure. In an announcement last October, the company stated it would provide Microsoft—a long-term supporter—with a 27% stake while still upholding its non-profit principles.

Sam Altman has countered Musk's legal maneuvers, accusing the billionaire of using the lawsuit as a tool to stifle a competitor in the aggressive AI race. OpenAI previously informed the court that no formal contract exists with Musk regarding the founding of the company. The organization further alleged that Musk is fabricating claims to seize a share of the success achieved by a company he once supported but later abandoned.