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OpenAI Calls Musk Move ‘Legal Ambush’ as Lawsuit Shift Raises Stakes for Microsoft (MSFT)

Story Highlights
  • Musk revised his lawsuit to seek structural changes at OpenAI, including oversight and leadership changes, rather than up to $134 billion in damages.
  • OpenAI says the last-minute shift is “legally improper” and could disrupt the trial, with potential ripple effects for Microsoft.
OpenAI Calls Musk Move ‘Legal Ambush’ as Lawsuit Shift Raises Stakes for Microsoft (MSFT)

Elon Musk has changed course in his legal fight with OpenAI just weeks before the trial, adding new demands that could reshape the case. OpenAI says the move is a “legal ambush” that comes too late and would disrupt the process.

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The lawsuit, first filed in 2024, targets OpenAI and Microsoft Corporation (MSFT). Musk claims the firm moved away from its original mission when it took in large funding and shifted toward a for-profit model. Both companies deny any wrongdoing.

New Demands Focus on Control, Not Cash

Earlier this year, Musk said he was seeking up to $134 billion in damages. Now, his legal team says any money awarded should go back to OpenAI, not to him.

At the same time, Musk is asking the court to unwind OpenAI’s shift to a for-profit structure. He also wants court oversight on future deals and funding, along with the removal of Chief Executive Officer Sam Altman.

However, OpenAI pushed back in a filing late Friday. The company said the changes are “legally improper and factually unsupported.” It also argued the new claims would require “different evidence and different witnesses than the case he sponsored until three days ago.”

Trial Risks Grow as Timeline Tightens

The trial is set for April 27, which leaves little time to adjust. Because of that, OpenAI says Musk is trying to “inject chaos into the proceedings” and change the narrative around the case.

Meanwhile, the shift could raise new risks for Microsoft, which has invested billions into OpenAI and relies on its AI tools across its products.

In the end, the judge will need to decide if Musk can revise his claims this late in the process. That decision may shape not only the trial but also how control over major AI firms is viewed in the U.S. going forward.

Is Microsoft Stock a Buy, Sell, or Hold?

Turning to the Street, Microsoft Corporation has a Strong Buy consensus, based on 38 analysts’ ratings. The average MSFT stock price target stands at $580.84, implying a 56.62% upside from the current price.

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