In a recent development in the legal battle between Elon Musk and OpenAI, a group of former employees of OpenAI have expressed their support for Musk. This comes just a day after OpenAI, led by CEO Sam Altman, filed a lawsuit against Musk, accusing him of harassment. The former employees, a dozen in total, have voiced concerns about OpenAI’s proposal to reorganize as a for-profit corporation, aligning themselves with Musk’s ongoing legal struggle against this change.
The group, made up of data scientists and engineers who were part of OpenAI from 2018 to 2024, argues that converting to a for-profit structure would violate the original mission of OpenAI, which was established as a nonprofit. Their court filing, reported by Bloomberg, emphasizes the importance of maintaining the nonprofit’s controlling role in the organization. They believe that any shift that reduces this control would undermine the values that OpenAI was built upon.
Represented by Harvard law professor Lawrence Lessig, the former employees stated, “If the OpenAI nonprofit agreed to a change in its corporate structure that took away its controlling role, that would fundamentally violate its mission.”
This conflict highlights the ongoing tensions between Musk, one of the wealthiest people in the world, and Altman, whose startup is among the most valuable in the tech industry. Musk, who co-founded OpenAI in 2015 but left its board in 2018, has accused OpenAI’s leadership of straying from its charitable roots, particularly after the company secured substantial investments from Microsoft Corp. in 2019. Following his departure, Musk started his own AI company, xAI, in 2023.
OpenAI has responded to the criticism by defending its restructuring plans. The company argues that the new for-profit model will still enable it to pursue its charitable goals, stating that the nonprofit will retain a significant stake in the future business. They aim to operate as a Public Benefit Corporation, similar to other AI labs, which would maintain obligations to both investors and the public.
In a response to the concerns raised, OpenAI assured that its mission remains unchanged. “We’re turning our existing for-profit arm into a Public Benefit Corporation,” the company stated, emphasizing that the nonprofit aspect of OpenAI is here to stay.
Musk’s attorney, Marc Toberoff, remarked that the filing by the former employees supports their case, suggesting that Altman’s portrayal of OpenAI’s mission was misleading. The ongoing legal proceedings are set to take a significant step forward, as a jury trial regarding Musk’s lawsuit against OpenAI is scheduled to begin in spring 2026.
The presiding judge, Yvonne Gonzalez Rogers, has moved to expedite the trial concerning OpenAI’s transition, rejecting Musk’s request to delay the company’s for-profit shift. This situation continues to draw public attention, showcasing the complex relationship between technology, profit motives, and ethical considerations in the AI field.
