Elon Musk has filed a lawsuit demanding $134 billion in damages from OpenAI openaiand Microsoft, accusing them of breaching the original non-profit mission of OpenAI by transforming it into a for-profit entity in pursuit of massive commercial gains. The complaint, filed in California federal court on January 14, 2026, alleges that OpenAI’s shift to a “capped-profit” structure and Microsoft’s multi-billion-dollar investment and exclusive cloud partnership violated the founding agreement that Musk helped establish in 2015, which required the organization to prioritize humanity’s benefit over profit.
Musk claims OpenAI’s pursuit of artificial general intelligence for commercial dominance particularly through the GPT series and enterprise deals contradicts its charter to develop AI “for the benefit of humanity as a whole, unrestricted by financial returns.” He seeks disgorgement of profits, reversal of the for-profit conversion, and $134 billion in compensatory and punitive damages, calculated from OpenAI’s valuation surge and Microsoft’s estimated gains from the partnership.
OpenAI and Microsoft have strongly denied the allegations, arguing that the suit is not only meritless but also motivated by competitive rivalry. Furthermore, OpenAI explained that its structure change was necessary to raise capital for safe AGI development, and it emphasized that it nevertheless continues to operate under strict safety and mission‑aligned governance. Likewise, Microsoft stressed that its investment supports innovation; however, it does so without controlling OpenAI’s direction.
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