Musk vs. Altman War: Elon Seeks $134 Billion in Damages from OpenAI

The feud between Elon Musk and Sam Altman has reached explosive new heights. In a January 17, 2026, court filing, Musk detailed his demand for damages ranging from $79 billion to $134 billion from OpenAI and its primary backer, Microsoft. The staggering sum stems from allegations that OpenAI defrauded him by abandoning its original nonprofit mission and reaping massive “wrongful gains” after Musk’s early financial and strategic contributions.

Musk co-founded OpenAI in 2015 as a nonprofit focused on safe, beneficial artificial general intelligence (AGI) for humanity. He contributed around $38 million in seed funding and helped recruit talent before leaving the board in 2018. Musk claims he was misled when OpenAI shifted to a capped-profit structure in 2019 and later pursued full for-profit ambitions, including massive Microsoft investments. He argues this betrayed the founding agreement and enriched OpenAI (now valued at around $500 billion) and Microsoft at his expense.

According to Musk’s expert witness, financial economist C. Paul Wazzan, OpenAI gained between $65.5 billion and $109.4 billion from Musk’s involvement, while Microsoft benefited by $13.3 billion to $25.1 billion. Musk seeks a portion of these “wrongful gains,” plus potential punitive damages and other penalties. The filing comes ahead of a jury trial set for late April 2026 in Oakland, California, after a federal judge rejected OpenAI and Microsoft’s attempts to dismiss the case.

OpenAI has called the lawsuit “baseless” and part of Musk’s “ongoing pattern of harassment” to slow the company and advantage his rival xAI. In a statement, OpenAI emphasized that Musk knew about and agreed to the for-profit transition plans in 2017 but walked away when negotiations stalled. The company accuses Musk of cherry-picking evidence and misrepresenting facts. Microsoft has denied aiding any breach, calling the claims without merit.

The Billionaire Rivalry’s Roots

The Musk-Altman clash dates back years. Musk has repeatedly criticized OpenAI for becoming “Microsoft’s closed-source de facto subsidiary,” prioritizing profits over safety. He left amid disagreements over direction and later launched xAI in 2023 to compete directly. Musk has sued multiple times—first in 2024 (dropped, refiled), alleging breach of contract, fraud, and unjust enrichment. A judge allowed key claims to proceed in early January 2026, paving the way for trial.

Altman has hit back, accusing Musk of competitive sabotage. In recent X exchanges, Altman mocked Musk’s math on damages, urging him to “get your maths right.” Musk fired off replies calling OpenAI’s pivot a betrayal and teasing explosive trial testimony that “will blow your mind.” The public barbs have fueled speculation about AI’s future: open vs. closed models, safety vs. speed, and who controls the technology shaping humanity.

What the $134 Billion Demand Means

The figure is astronomical—even for Musk, whose net worth exceeds $700 billion. It dwarfs most corporate lawsuits and highlights OpenAI’s explosive growth from a $1 billion valuation in 2019 to $500 billion today, driven by ChatGPT’s success and Microsoft’s $13+ billion investment. Musk argues his early role was pivotal, entitling him to a share of the windfall.

OpenAI counters that Musk’s contributions were minimal compared to later efforts by Altman, employees, and partners. They accuse him of inflating his role and using the lawsuit for leverage or publicity. If Musk wins big, it could force massive payouts, reshape OpenAI’s structure, or even block its full for-profit conversion.

Broader Implications for AI and Tech

This “Trial of the Century” (as some call it) could set precedents for nonprofit-to-profit transitions, founder agreements, and AI governance. It underscores tensions in the AI race: Musk pushes for open, safety-focused development via xAI, while OpenAI races ahead with closed models. A Musk victory might slow OpenAI or force transparency; a loss could embolden for-profit AI giants.

As discovery continues and trial nears, expect more leaks, filings, and X fireworks. Musk has vowed the testimony will shock the world. For now, the war rages on—billionaires battling over billions, with the future of AI hanging in the balance.

This high-stakes drama captivates tech watchers: ego, innovation, and enormous money collide. Stay tuned for April—when the courtroom showdown begins.