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Elon Musk demand $134B from OpenAI in fraud lawsuit

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In a major escalation of the legal battle between tech titans, Elon Musk has filed a court request for disgorgement of “wrongful gains” totaling between $79 billion and $134 billion from OpenAI and Microsoft.

The filing, submitted on January 16, 2026, details the specific damages Musk is seeking as the case heads toward a high-profile jury trial in April.


The Financial Logic: “Seed Money to Sovereign Stake”

Musk’s legal team, led by Steven Molo, argues that the damages should be proportional to OpenAI’s current valuation, which has surged past $500 billion.

  • The Argument: Musk’s lawyers contend that his initial $38 million seed donation (which accounted for roughly 60% of OpenAI’s early funding) provided the “credibility and capital” upon which the entire company was built.
  • Startup Analogy: The filing draws a direct comparison to startup investing: “Just as an early investor in a startup company may realize gains many orders of magnitude greater than the investor’s initial investment, the wrongful gains… are much larger than Musk’s initial contributions.”
  • The Breakdown:
    • From OpenAI: Musk is seeking between $65.5 billion and $109.4 billion.
    • From Microsoft: He is seeking between $13.3 billion and $25.1 billion for its role in “effectively owning” the startup.

Key Evidence: The “Brockman Diaries”

The request for over $100 billion comes just days after the unsealing of thousands of pages of internal documents, including private notes from OpenAI co-founder Greg Brockman.

  • The “Lie” Entry: A 2017 journal entry from Brockman revealed his internal conflict, stating that if the company shifted to a for-profit model shortly after promising Musk otherwise, any claim of commitment to a nonprofit mission “would be a lie.”
  • OpenAI’s Defense: OpenAI has responded with a blog post titled “The Truth Elon Left Out,” arguing that Musk himself pushed for a for-profit structure in 2017 but only turned against the idea after his demand for majority equity and absolute control was rejected.

Trial Timeline & Stakes

U.S. District Judge Yvonne Gonzalez Rogers has officially cleared the path for a jury to decide the case, noting there is “plenty of circumstantial evidence” that Musk was deceived.

EventDate
Jury SelectionApril 27, 2026
Trial StartApril 28, 2026
Expected Duration4 Weeks (Ends May 22, 2026)
LocationFederal Court, Oakland, California

OpenAI’s Response to the $134B Demand

OpenAI has described the financial demand as “unserious” and part of a broader “harassment campaign” by a competitor (Musk’s xAI). The company warned its investors on January 16 to expect “provocative and attention-grabbing” statements from Musk as the trial approaches to manipulate public sentiment and market perceptions.

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