Market commentator Jim Cramer stated on Thursday that Elon Musk's lawsuit against OpenAI presents significant dangers for the artificial intelligence company, particularly regarding any future public listing plans.
"This Musk suit against OpenAI is the real deal — and not a good one for OpenAI if and when it wants to go public," Cramer posted on X.
He further noted that OpenAI might need to secure a substantial private funding round before the trial begins, pointing out that Musk possesses "unlimited firepower."
A federal judge has scheduled the trial to start on April 27. The lawsuit names OpenAI CEO Sam Altman and Microsoft Corp. as defendants.
Elon Musk alleges that OpenAI departed from its original nonprofit, public-benefit mission. He claims the organization misled him during its transformation into a for-profit entity with significant financial connections to Microsoft.
The legal filing argues these changes breached the foundational principles under which Musk agreed to co-found and fund the organization.
Microsoft, an initial investor in OpenAI in 2019, has invested billions and became its largest stakeholder following a restructuring last year.
Musk was a founding member of OpenAI in 2015 and its primary early supporter, contributing tens of millions of dollars before leaving in 2018.
OpenAI gained widespread recognition after launching ChatGPT in 2022. Musk has since established a competing AI venture called xAI.
On the prediction market platform Kalshi, traders are increasingly betting on Musk's success in the case. Current data shows a 57% probability of Musk winning, with trading volume surpassing $30,000.