The close relationship between Microsoft and OpenAI is one of the biggest and most noteworthy partnerships in the tech world. However, it hasn’t always been smooth sailing. Over the past year, they’ve faced challenges like the unexpected firing of OpenAI’s CEO, Sam Altman, demands from investors to make OpenAI a profitable company, and legal issues related to copyright.
It’s ironic that Elon Musk, the CEO of Tesla and one of the world’s richest people, is now a strong critic of the partnership between Microsoft and OpenAI. He originally helped found OpenAI in 2015 and played a key role in the company until he left its board in 2018.
The executive is suing OpenAI and its CEO, Sam Altman, claiming they’ve abandoned the company’s original goals and engaged in illegal, racketeering behavior.
According to reports, the billionaire was instrumental in bringing OpenAI and Microsoft together, and even encouraged OpenAI CEO Sam Altman to pursue a deal with Microsoft as early as 2016.
New legal filings in the dispute between Elon Musk and OpenAI show that Musk clearly favored Microsoft for cloud services and described Amazon’s Jeff Bezos with a derogatory term, calling him a “tool.”
According to an exhibit shared on Court Listener:
In 2016, Elon Musk suggested OpenAI switch from using Amazon’s cloud services to Microsoft’s. He then helped facilitate OpenAI’s access to Microsoft’s Azure services.
A U.S. federal judge in Oakland, California, recently rejected OpenAI’s attempt to dismiss a lawsuit brought by Elon Musk. Judge Yvonne Gonzalez Rogers decided the case will go to a jury trial, currently scheduled for March 2026. She stated plainly, “This case is going to trial.”
Elon Musk says he put about $38 million into OpenAI, initially believing it was a donation to a non-profit. But now, he’s claiming OpenAI misrepresented itself as a charity to attract investment funding.
The executive wants OpenAI to return profits he believes were obtained unfairly from their multi-billion dollar deal with Microsoft, and is also seeking compensation for damages.
This announcement follows OpenAI’s transition to a for-profit company, solidified by a new, expanded partnership with Microsoft. Microsoft, as OpenAI’s primary investor, now owns a 27% share, valued at around $135 billion in OpenAI’s new corporate structure.
Because of Microsoft’s strong partnership with OpenAI, the company is now involved in a lawsuit filed by Elon Musk against OpenAI. Microsoft claims it wasn’t aware of any wrongdoing by OpenAI, its CEO Sam Altman, or Greg Brockman.
This lawsuit is the newest development in a pattern of troubling behavior by Mr. Musk. We strongly condemn any violation of confidentiality and have no desire to obtain confidential information from other companies.
OpenAI
Satya Nadella revealed that Bill Gates initially disagreed with his 2019 decision to invest $1 billion in OpenAI. Gates was reportedly concerned about OpenAI’s non-profit status and even suggested the investment would be a waste of money, according to Nadella.
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2026-01-09 15:39