Date: 2025-05-01 Page is: DBtxt003.php txt00028189
ELON MUSK ... CORPORATE EMPIRE
SEEKING TO MERGE CHATGPT INTO THE MUSK GROUP
Elon Musk is dealt a devastating legal blow that may set him back
The world's wealthiest man is learning that there are limits to his power.
SEEKING TO MERGE CHATGPT INTO THE MUSK GROUP
Elon Musk is dealt a devastating legal blow that may set him back
The world's wealthiest man is learning that there are limits to his power.
Elon Musk, co-founder of Tesla and SpaceX is facing complications regarding
a recent deal he has so far failed to make. (Photo by Apu Gomes/Getty Images)
Original article: https://www.thestreet.com/technology/elon-musk-is-dealt-a-devastating-blow-that-may-set-him-back
Peter Burgess COMMENTARY
Elon Musk is an unusual person ... quite brilliant in some ways, and an absolute moron in others.
The fact that he has become one of the richest people on the planet ... maybe at this point the richest ... is amazing.
But it also suggests that there is something fundamentally wrong with the way the modern global economy actually works and how the 'accounting' is done.
This is the primary goal of TVM ... TrueValueMetrics.
The concepts are quite simple ... but turning simple ideas into real world practical applications is complicated.
The need for reform of management metrics for our global socio-enviro-economic system is clear ... but there is a powerful constituency in support of zero change to the established methods for corporate performance, no matter how outdated and flawed the methodology.
I am also bothered by the conflicts of interest there must be in connection with the Musk role in the new Department of Government Efficiency (DOGE). Trump seems to be in multiple minds as to how Trump and DOGE need to function within the Trump Presidency. Major conflicts of interest seem to be everywhere.
I am not optimistic that much of value to the general public will emerge from the Trump / Musk collaboration!
Peter Burgess
The world's wealthiest man is learning that there are limits to his power.
Written by Samuel O'Brient
Samuel O'Brient is a tech markets reporter for TheStreet, covering the ever-evolving world of technology and the companies that drive it.
Mar 5, 2025 8:33 PM EST
Often considered the serial entrepreneur of his generation, Elon Musk is no stranger to juggling many responsibilities.
After years of running Tesla (TSLA) , SpaceX and xAI, among other companies, he recently took on a new position at the helm of the so-called Department of Government Efficiency (DOGE), a role that seems to be occupying most of his time these days.
However, despite his vast portfolio of companies that span different industries, Musk recently tried to expand it even further, offering to acquire one of the most popular names in tech, shocking many people.
This quest has a new development, suggesting that even Musk’s vast resources and significant reach may not be enough to move the needle in his favor, a phenomenon that he likely isn’t used to.
Musk’s latest acquisition target is moving further out of his reach
In February 2025, Musk made an announcement that likely shocked many people, even those who follow his moves closely. Accompanied by other group members, he submitted an offer to acquire OpenAI, the artificial intelligence (AI) research organization responsible for creating ChatGPT.
One of OpenAI’s original founders and investors, Musk has a well-documented feud with CEO Sam Altman dating back to his exit in 2018. Altman quickly rejected Musk’s offer and jokingly chided him for his purchase of Twitter (now X), which has plummeted in value since Musk purchased it in 2022.
Elon Musk's latest move shocks tech world
However, Musk’s attempts to exert power over OpenAI go back even further. In 2024, he sued the nonprofit lab, alleging that it had betrayed its principles and begun prioritizing profits over responsible AI research as it transitioned to a for-profit model.
Yesterday, U.S. District Judge Yvonne Gonzalez Rogers denied Musk’s bid to pause the OpenAI transition, citing a lack of “the high burden required for a preliminary injunction” on his part.
She added that she would consider holding a trial to resolve the matter as early as Fall 2025, “given the public interest at stake and potential for harm if a conversion contrary to law occurred.”
When Musk asked for a court order to stop OpenAI’s for-profit transition, he added xAI as a plaintiff, arguing that the organization’s practices were unfairly stifling industry competition.
Musk’s attorney previously amplified Musk’s arguments, claiming that if OpenAI is allowed to continue its for-profit conversion, it will mean “irreparable harm” for Musk, xAI, and its investors, as well as the general public. That said, it is not clear how the general public would be impacted by OpenAI switching from its non-profit model.
Gonzalez Rogers expressed some skepticism at these claims last month, describing them as a “stretch,” though she highlighted the importance of the case moving to trial.
OpenAI hits back at Musk’s claims of unfair practices
OpenAI doesn’t appear worried about Musk’s allegations. It released a statement responding to these claims, suggesting that Musk may have personal incentives that are not necessarily aimed at the public good.
Elon Musk has challenged claims made by OpenAI CEO Sam Altman in a new battle that may come to define modern Silicon Valleyv
“This has always been about competition,” the statement notes. “Elon’s own emails show that he wanted to merge a for-profit OpenAI into Tesla. That would have been great for his personal benefit but not for our mission or U.S. interests.”
Following Musk’s offer, though, OpenAI considered making a drastic change regarding its board of directors. By granting them “outsized voting power,” the organization’s leaders could technically ensure that its board did not lose control as OpenAI restructured.
Based on the recent court developments, though, it seems that they don’t need to take that type of action, at least not yet. It remains unclear how things will go once the trial reaches a jury, likely in the Fall of 2025.