Elon Musk’s lawyers are asking the court to dismiss OpenAI’s countersuit, which claims that the Tesla (TSLA) CEO acted unfairly by trying to buy Microsoft-backers OpenAI (MSFT) without permission and by asking state attorneys general to investigate OpenAI’s shift to a for-profit company. Musk’s legal team says that their communications with OpenAI’s board and government officials are protected by the First Amendment and are allowed during legal disputes.
Interestingly, OpenAI has accused Musk of making a fake $97 billion bid to buy the company, calling it a “sham.” However, Musk’s lawyers said the offer was real and was meant to start a competitive bidding process for OpenAI’s assets. They also argued that the bid encouraged competition and was not meant to block others, so it should be seen as fair business behavior.
Nevertheless, if the court ends up not agreeing with their defense, Musk’s team wants the judge to pause OpenAI’s countersuit while the main parts of Musk’s original lawsuit — which accuses the company of abandoning its original nonprofit goals — move forward. That trial is set to happen in March. Musk’s lawyers also said that OpenAI’s recent move to keep its nonprofit arm in control, and any approval it gets from state attorneys general, won’t resolve the main legal issues.
Is MSFT Stock a Buy?
Although you cannot directly invest in OpenAI, you can buy shares of Microsoft, which has a 49% stake in OpenAI. And according to analysts, Microsoft stock has a Strong Buy consensus rating among 35 Wall Street analysts. That rating is based on 30 Buys and five Holds assigned in the last three months. Furthermore, the average MSFT price target of $506.31 implies 15.8% upside potential.
