Elon Musk intensifies his legal battle against OpenAI, requesting a U.S. court to stop the organization’s shift to a for-profit model. He argues this transition violates their original nonprofit mission and could give OpenAI’s ChatGPT an unfair market advantage, potentially harming competitors, including his own AI venture, xAI.
Musk claims OpenAI, which he co-founded with Sam Altman in 2015, has deviated from its founding principles. He points to the 2019 partnership with Microsoft as a turning point, accusing OpenAI of prioritizing profits over its mission to advance AI for societal benefit. He also alleges that OpenAI’s agreements with Microsoft and other investors breach federal antitrust laws.
“OpenAI now operates like a Frankenstein, stitched together to serve Microsoft’s and Altman’s financial interests,” Musk’s legal team asserts.
OpenAI dismisses Musk’s claims, defending its commitment to innovation and transparency. A company spokesperson calls the accusations baseless, emphasizing that OpenAI remains focused on its goals. Meanwhile, reports indicate that OpenAI is discussing its corporate structure with California regulators.
This marks Musk’s third attempt to challenge OpenAI’s for-profit shift. He initially filed a lawsuit in February, withdrew it in June, and refiled it in federal court in August. His latest motion aims to stop OpenAI’s restructuring and block exclusive investor agreements he sees as anti-competitive.
OpenAI, established as a nonprofit in 2015, initially focused on developing AI for the public good. Its 2019 decision to create a capped for-profit subsidiary sparked ongoing debate about balancing commercial interests with ethical commitments. Now valued at $157 billion, OpenAI remains under scrutiny regarding its adherence to its original mission.
At the same time, Musk continues expanding his own AI startup, xAI, launched in 2023. The company’s valuation has quickly surged to $50 billion, reflecting its rapid growth and market potential.
The future of OpenAI’s structure remains uncertain as the legal battle continues. OpenAI’s board chairman, Bret Taylor, assures that any restructuring will maintain the nonprofit’s role and ensure it benefits from its stake in the for-profit entity.
