Elon Musk’s lawsuit against OpenAI is unlikely to go how he hopes based on comments made by U.S. District Judge Yvonne Gonzalez Rogers, who is overseeing the case. She claims the type of injunction Musk is asking for isn’t handed out often. The last time Rogers did so was in Epic Games’ lawsuit against Apple (AAPL) in 2020, which finally ended in 2024.
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Musk wants to stop the ChatGPT maker from converting to a for-profit company from a non-profit company. This block could have major effects on OpenAI and delay its operations for years. Musk, one of the original investors in OpenAI, claims the artificial intelligence company has failed to stand by its mission when it was created as a non-profit.
Musk has several other complaints about OpenAI included in his lawsuit. That includes claims it broke anti-trust laws when warning it would limit investor knowledge if they invested in another AI company. He also claims that OpenAI CEO Sam Altman took part in self-dealing through his investments in Reddit (RDDT).
Will Musk Win His OpenAI Lawsuit?
It seems unlikely that Musk will come out of this lawsuit as the winner. His requested injunction likely won’t hold, allowing the Microsoft (MSFT)-backed AI developer to transform into a for-profit company. Also, Musk’s own xAI received investments from Nvidia (NVDA) and MGM (MGM), both OpenAI investors, damaging his anti-trust argument.
OpenAI vs. xAI: Which is the Better Investment?
For investors, what matters is which of the AI companies is the better investment. OpenAI and xAI are both private companies, leaving retail investors unable to hold their shares directly. Instead, they might consider stakes in Elon Musk’s Tesla (TSLA) or OpenAI backer Microsoft to gain exposure to the companies. Of these two, MSFT is the better investment with its Strong Buy rating and average $509.50 price target, representing a potential 23.2% upside.
