Elon Musk is seeking between $79 billion and $134 billion in damages from OpenAI and Microsoft, alleging that the artificial intelligence company defrauded him by abandoning its original nonprofit mission, according to a report by Bloomberg. The extraordinary damages figure is derived from an analysis by expert witness C. Paul Wazzan, a financial economist with extensive experience in complex commercial litigation, having been deposed nearly 100 times and testified in court on numerous occasions.
Wazzan’s assessment centers on Musk’s early role in founding OpenAI in 2015 and his initial financial contribution of approximately $38 million. Based on OpenAI’s current estimated valuation of $500 billion, Wazzan concludes that Musk is entitled to a substantial share of the company’s value, reflecting what he characterizes as the economic benefit Musk would have retained had OpenAI remained aligned with its original nonprofit structure. The calculation implies a return of roughly 3,500 times Musk’s original investment.
The analysis goes beyond Musk’s direct financial contributions, incorporating what Wazzan describes as Musk’s technical input, strategic guidance, and business influence during OpenAI’s formative years. On that basis, Wazzan estimates that OpenAI realized wrongful gains ranging from $65.5 billion to $109.4 billion as a result of its alleged departure from its founding principles. Microsoft, which currently holds an estimated 27 percent ownership stake in OpenAI, is said to have accrued an additional $13.3 billion to $25.1 billion in gains tied to the same shift.
Musk’s legal team argues that he should be treated as an early-stage investor whose stake would have appreciated “many orders of magnitude” over time, consistent with the outsized returns typically associated with successful technology startups. However, the magnitude of the damages sought has drawn attention to the broader implications of the lawsuit, suggesting that the dispute extends beyond financial compensation and into questions about governance, mission alignment, and control over one of the most influential AI organizations in the world.
The scale of the claim stands in stark contrast to Musk’s existing wealth. His personal fortune is estimated at approximately $700 billion, making him the wealthiest individual globally. According to Reuters, Musk’s net worth now exceeds that of Google co-founder Larry Page, the world’s second-richest person, by roughly $500 billion, based on Forbes’ billionaire rankings. Separately, Tesla shareholders approved a compensation package for Musk valued at $1 trillion in November, the largest executive pay package ever authorized by a public company.
Within that context, even a $134 billion judgment would represent a relatively small increase in Musk’s overall wealth. This has reportedly reinforced OpenAI’s internal view that the lawsuit reflects what the company has described as an “ongoing pattern of harassment” rather than a dispute driven by financial necessity. According to Bloomberg, OpenAI has already circulated a letter to investors and business partners warning that Musk is likely to make what it characterized as “deliberately outlandish, attention-grabbing claims” as the case proceeds.
The lawsuit is scheduled to go to trial in April and will be heard in Oakland, California, roughly 15 miles east of San Francisco. The outcome is expected to carry significant implications not only for the parties involved, but also for the broader AI industry, particularly regarding the relationship between nonprofit origins and commercial expansion in high-stakes technology ventures.