Elon Musk has intensified his legal battle against OpenAI and its close partner Microsoft, seeking damages that could reach $134 billion. The Tesla and SpaceX chief alleges that OpenAI, which he co-founded in 2015, has strayed far from its original mission of developing artificial intelligence for the benefit of humanity.

According to court filings, Musk claims the organizations generated enormous profits by transforming OpenAI into a commercially driven entity, allegedly violating early commitments to operate as a non-profit and open research organization.

Allegations of Mission Drift

Musk argues that OpenAI’s partnership with Microsoft fundamentally altered the company’s direction. He alleges that exclusive licensing deals, proprietary models, and closed-source AI systems enabled Microsoft and OpenAI to capture massive economic value, while sidelining the founding principles Musk supported.

The lawsuit describes these profits as “wrongful gains,” asserting that OpenAI’s advanced AI models now primarily serve corporate interests rather than the public good.

Microsoft’s Role Under Scrutiny

Microsoft, which has invested billions of dollars into OpenAI, is named as a central beneficiary in the dispute. Musk’s legal team contends that Microsoft gained privileged access to cutting-edge AI technology, strengthening its cloud and enterprise dominance through Azure and other products.

The filing suggests that OpenAI effectively became a tool to expand Microsoft’s AI ecosystem, rather than remaining an independent research lab.

OpenAI’s Response

OpenAI has rejected Musk’s claims, maintaining that its transition to a capped-profit structure was necessary to fund the massive costs of developing advanced AI systems. The organization has stated that Musk was aware of these structural changes and had previously supported alternative funding models.

OpenAI argues that its partnership with Microsoft enabled responsible AI development at scale, without abandoning its commitment to safety and societal benefit.

High Stakes for the AI Industry

If Musk’s claim succeeds, it could reshape how AI research organizations structure partnerships, funding, and intellectual property rights. Legal experts say the case raises broader questions about transparency, governance, and accountability in artificial intelligence development.

The potential $134 billion figure reflects what Musk alleges to be the total economic benefit derived from AI systems that were originally intended to remain broadly accessible.

What Comes Next

The case is expected to move through lengthy legal proceedings, with significant implications for Silicon Valley’s AI power dynamics. As regulators worldwide increase scrutiny of Big Tech’s AI practices, the outcome could influence future rules around AI commercialization and ethical oversight.