Elon Musk and his legal team are pushing for an auction to force OpenAI, known for its ChatGPT chatbot, to sell part of its business, according to the Financial Times. Musk’s attorney, Marc Toberoff, sent letters to law officials in California and Delaware on behalf of investors interested in owning a stake in the AI company, which is backed by Microsoft (MSFT). However, a source told the outlet that OpenAI has no plans for such an auction and accused Musk of stirring chaos.
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Musk’s rocky relationship with OpenAI dates back to 2017, when he reportedly demanded majority control of the company and to be named CEO as it transitioned to a for-profit structure. OpenAI rejected these terms by saying that it went against its mission, which led to Musk stepping down as co-chair in 2018.
In 2024, Musk filed an injunction to block OpenAI’s for-profit transition and accused the company of anticompetitive practices. Musk has criticized OpenAI for prioritizing profits over humanity and recently added Microsoft, LinkedIn co-founder Reid Hoffman, and former OpenAI executive Dee Templeton as co-defendants to his lawsuit.
Is MSFT Stock a Buy?
Although you cannot directly invest in OpenAI, you can buy shares of Microsoft, which has a 49% stake in the company. And according to analysts, Microsoft stock has a Strong Buy consensus rating among 29 Wall Street analysts. That rating is based on 27 Buys and two Holds assigned in the last three months. After a 12% rally in its share price over the past 12 months, the average MSFT price target of $505.73 implies 19.1% upside potential.
