Elon Musk reignites legal battle with OpenAI over non-profit to for-profit transition
OpenAI denies Musk’s allegations, calling his legal actions part of a broader competitive campaign.
Elon Musk has reignited his legal fight with OpenAI, accusing the company’s co-founders of manipulating him into investing in the nonprofit startup before turning it into a for-profit business. Musk claims they enriched themselves by draining OpenAI’s key assets and technology. OpenAI, however, has dismissed these claims, describing the lawsuit as part of Musk’s efforts to gain a competitive edge.
OpenAI, which transitioned to a for-profit subsidiary in 2019, attracted billions in outside funding, including from Microsoft. Musk argues the company deviated from its original mission, but OpenAI maintains it remains committed to developing safe and beneficial AI. The startup also suggested Musk’s departure came after his attempt to dominate the organisation failed.
OpenAI has had a turbulent year with leadership changes and rapid growth. The company’s headcount more than doubled, and despite losing key figures, it remains a major player in AI innovation. Recent investments pushed OpenAI’s valuation to $157 billion, underscoring continued investor confidence.
Musk’s ongoing rivalry with OpenAI coincides with his other AI ventures, including xAI, which he launched in 2023. He’s also facing allegations in a Delaware lawsuit accusing his AI company of draining talent and resources from Tesla, potentially harming shareholders.