Jim Cramer Says Elon Musk's OpenAI Lawsuit Is 'The Real Deal' As Kalshi Bettors Raise Odds Of xAI CEO Winning

On Thursday, market commentator and CNBC personality Jim Cramer said that Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk's lawsuit against OpenAI poses serious risks for the artificial intelligence company, particularly if it ever pursues a public listing.

Jim Cramer Flags High Stakes For OpenAI

"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 wrote on X.

He added that OpenAI may need to complete a large private fundraising round before trial, noting that Musk has "unlimited firepower."

Trial Date Set For April 27

A federal judge has scheduled the trial to begin April 27 in Musk's lawsuit against OpenAI CEO Sam Altman and other defendants, including Microsoft Corp (NASDAQ:MSFT).

Musk alleged that OpenAI abandoned its founding nonprofit, public-benefit mission and misled him while transforming the organization into a for-profit enterprise with deep financial ties to Microsoft.

The lawsuit claims those changes violated the principles under which Musk agreed to fund and co-found the organization.

Microsoft, which first invested in OpenAI in 2019, has since poured billions into the company and became its largest stakeholder following a restructuring last year.

The tech giant is also named as a defendant in the case.

Musk's Role In OpenAI's Early Days

Musk was one of OpenAI's original founders in 2015 and its largest early backer, contributing tens of millions of dollars before exiting the organization in 2018.

OpenAI later rose to global prominence following the release of ChatGPT in 2022.

Musk has since launched rival AI startup xAI, positioning it as an alternative approach to artificial intelligence development.

Kalshi Bettors React To Legal Developments

Prediction market exchange Kalshi shows traders increasingly betting that Musk will prevail in the case. At the time of writing, the market indicates a 57% chance that Musk will win his lawsuit against OpenAI, with trading volume exceeding $30,000.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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