Tech giant Microsoft (MSFT) had the original goal of turning its early OpenAI investment into a $92 billion return, according to planning documents from early 2023 that were revealed in court. CEO Satya Nadella told a federal jury in Oakland, California, that the investment “worked out well” because Microsoft took the risk early. By that point, Microsoft had invested about $13 billion in OpenAI, the company behind ChatGPT. As a result, that early bet helped Microsoft become one of the biggest financial winners of the AI boom.
Claim 55% Off TipRanks
New trading tool for TSLA bearsSince then, OpenAI’s valuation has exploded. The company was valued at $852 billion by the end of March, and Microsoft’s stake was valued at about $135 billion as of October. However, the partnership has also become more complicated. Microsoft and OpenAI have argued over parts of their agreement, and the two companies now compete more directly in some areas. Furthermore, as part of OpenAI’s restructuring last year, Microsoft received a 27% ownership stake in the AI startup.
The disclosure came during Elon Musk’s lawsuit against OpenAI and Microsoft. Musk claims that OpenAI co-founders Sam Altman and Greg Brockman abandoned the company’s original nonprofit mission by moving toward a for-profit model, and he alleges that Microsoft helped make that shift possible. Unsurprisingly, OpenAI, Altman, Brockman, and Microsoft all deny wrongdoing. They argue that Musk’s claims are baseless and are meant to benefit his own AI company, xAI, which launched in 2023.
What Is the Prediction for TSLA Stock?
When it comes to Elon Musk’s companies, most of them are privately held. However, retail investors can invest in his most popular company, Tesla (TSLA). Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSLA stock based on 13 Buys, 12 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $410.21 per share implies 7.5% downside risk.
