Elon Musk has filed a staggering $134 billion in damages in a malicious lawsuit against OpenAI and Microsoft.
According to Bloomberg , the latest lawsuit accuses OpenAI of betraying its core mission as a nonprofit organization. Musk is seeking damages ranging from $79 billion to $134 billion, alleging “unjust enrichment” that OpenAI and Microsoft obtained through their partnership.
In court proceedings, Musk highlights his substantial contribution as a funder, having pledged an initial investment of $38 million, equivalent to approximately 60% of the nonprofit’s initial funding needs. He also highlights his crucial role in fostering the recruitment of leading professionals and providing crucial strategic guidance in the early stages of the organization’s development.
As xAI, the artificial intelligence company founded by the entrepreneur, continues its operations, he announced that his company has received an injunction from California Attorney General Rob Bonta . The injunction immediately bans operations related to the Grok chatbot, which apparently produces deepfake pornographic images without consent.
The astronomical compensation figure was calculated by financial economist C. Paul Wazzan, who estimates OpenAI’s “ill-gotten gains” at between $65.5 billion and $109.43 billion, with Microsoft netting between $13.3 billion and $25.06 billion. Given OpenAI’s current valuation of $500 billion , Musk argues that, as its primary initial backer, he is entitled to a substantial portion of the accrued value.
In the litigation against OpenAI, Musk occupies a position of perceived moral superiority, harshly criticizing his former collaborators for their “ingratitude” and neglect of AI safety and nonprofit commitments.
Conversely, xAI’s activities suggest a precarious lack of security measures, turning Grok into a haven for deepfake-related wrongdoing . While Musk uses the legal system to demand billions of dollars for “unjust enrichment,” his products are under siege by regulators for their lax standards.
Bonta alleges that xAI developed a “Spicy Mode” specifically to facilitate the creation of explicit content, using it as a marketing ploy. The Attorney General’s office has strongly demanded that xAI stop “aiding or abetting” the creation and dissemination of unintentional digital pornography, citing violations of several California civil and criminal laws. Although X (formerly Twitter) subsequently restricted Grok’s image generation behind a paywall and blocked certain features in specific jurisdictions, the California Department of Justice has requested a formal accounting of the corrective measures within five days.
This dichotomy reveals a profound tension in Musk’s philosophy: he aspires to be humanity’s virtuous “AI safety sentinel” while harnessing AI’s chaotic potential to foster user engagement and growth. In an era of increasingly stringent legal and regulatory oversight, this dualistic approach appears increasingly unsustainable.
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