Sam Altman-led OpenAI has countersued billionaire Elon Musk, accusing him of “bad-faith tactics” to slow the transition of the ChatGPT-maker into a for-profit organization. In its countersuit, OpenAI is seeking an injunction to stop Musk from further disruptive actions. The company has also requested the judge that Musk be “held responsible for the damage he has already caused.”
The Microsoft (MSFT) backed company was valued at over $300 billion during its latest $40 billion funding round. Although the round was successful, the funding is based on the condition that OpenAI convert to a for-profit structure by this year end. Altman has repeatedly stated that the for-profit structure will help OpenAI raise more funding, which is required to achieve its future ambitions of reaching AGI (artificial general intelligence).
OpenAI Alleges Musk Is Jealous of its Success
Musk, who also started his own artificial intelligence (AI) company, xAI, sued OpenAI for altering the firm’s mission of developing AI for the public benefit. Musk was one of the co-founders of OpenAI alongside Altman and has sued the company for converting its non-profit structure. A jury trial for the case is scheduled for Spring 2026. Interestingly, Musk’s social media platform X was acquired by xAI for $33 billion in an all-stock transaction last month. Musk is also the CEO of electric vehicle maker Tesla (TSLA) and the owner of the space exploration company SpaceX.
OpenAI’s lawsuit alleges that Musk engaged in social media attacks, frivolous legal actions, and unsuccessful takeover attempts, all with the intent of damaging its reputation and taking control of the company. The complaint claims that Musk made a “fake takeover bid,” offering $97.4 billion to acquire OpenAI. OpenAI’s board outrightly rejected the bid, and Altman stated that OpenAI was not for sale.
Furthermore, the lawsuit claims that Musk is jealous of OpenAI’s success, the same company that he once founded and later abandoned. Musk is said to be on a personal mission to “take down OpenAI,” while building a solid rival in the form of xAI that could lead AI innovations. The filing argues that all these measures are aimed at securing Musk’s own benefit, rather than for the betterment of humanity.
Is Tesla a Buy, Hold, or Sell?
Analysts prefer to remain on the sidelines on Tesla stock owing to the ongoing headwinds. On TipRanks, TSLA stock has a Hold consensus rating based on 16 Buys, 11 Holds, and 11 Sell ratings. Also, the average Tesla price target of $307.75 implies 13.1% upside potential from current levels. Year-to-date, TSLA stock has lost 32.6%.
