Elon Musk just secured a small win in his legal fight against ChatGPT maker OpenAI 's CEO Sam Altman . Just a day after OpenAI sued Elon Musk, claiming of harassment; a dozen former employees of OpenAI are reportedly challenging the artificial intelligence (AI) startup's plan to reorganize as a for-profit entity, aligning themselves with Elon Musk's legal battle against the move. According to a court filing obtained by Bloomberg, the group of data scientists and technicians, who worked at OpenAI between 2018 and 2024, argued for maintaining the nonprofit arm's controlling stake in the company. They contend that altering the corporate structure to diminish the nonprofit's control would fundamentally violate OpenAI's original mission.
"If the OpenAI nonprofit agreed to a change in the OpenAI corporate structure which took away its controlling role, that would fundamentally violate its mission," the former employees stated in the filing, as reported by Bloomberg. The group is being represented by Harvard law professor and political activist Lawrence Lessig.
The report highlights that this development marks the latest chapter in the ongoing dispute between the world's wealthiest individual and one of the most highly valued startups. Musk initiated the legal challenge last year, accusing OpenAI CEO Sam Altman of deviating from the company's initial charitable purpose when it began receiving billions of dollars in investment from Microsoft Corp. in 2019. Musk was involved in OpenAI's founding in 2015 but left its board in 2018. He subsequently launched his own AI venture, xAI, in 2023.
OpenAI, as the report notes, has defended its restructuring plans, asserting that the new structure would still advance its charitable goals. The company argues that the nonprofit would retain a significant stake in the future for-profit entity, which would operate as a public benefit corporation with obligations to both shareholders and the public. OpenAI has stated that the restructuring is necessary to attract investment and fund its mission, Bloomberg reported.
OpenAI on the for-profit status
In a statement quoted in the report, OpenAI said, "Our board has been very clear: our nonprofit isn’t going anywhere and our mission will remain the same. We’re turning our existing for-profit arm into a Public Benefit Corporation — the same structure as other AI labs like Anthropic — where some of these former employees now work — and xAI."
Bloomberg's reporting points out that the former employees' filing emphasizes OpenAI's 2018 charter, which declared that the startup "is not organized for the private gain of any person" and would focus on ensuring the safe use of AI. Some of these former employees, Bloomberg notes, have previously voiced concerns about OpenAI's ability to balance safety considerations with the commercialization of its technology.
Marc Toberoff, Musk's attorney, stated that the friend-of-the-court filing by the former employees "confirms what we already knew," according to Bloomberg.
"Altman presented OpenAI’s charitable mission as binding and used it as prop to seduce and exploit the contributions of Musk and top AI talent," Toberoff said in a statement reported by Bloomberg.
Elon Musk and OpenAI jury trial to begin in spring next year
Elon Musk's lawsuit against OpenAI will go to a jury trial in spring 2026, the federal judge presiding over the case decided recently. OpenAI and Musk have agreed to fast-track a trial over OpenAI's for-profit shift, the latest turn in legal fight between the world's richest person and OpenAI CEO Sam Altman playing out publicly in court. The judge, Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California, had denied Musk's request to pause the ChatGPT maker's transition to a for-profit model and instead proposed an expedited trial.
"If the OpenAI nonprofit agreed to a change in the OpenAI corporate structure which took away its controlling role, that would fundamentally violate its mission," the former employees stated in the filing, as reported by Bloomberg. The group is being represented by Harvard law professor and political activist Lawrence Lessig.
The report highlights that this development marks the latest chapter in the ongoing dispute between the world's wealthiest individual and one of the most highly valued startups. Musk initiated the legal challenge last year, accusing OpenAI CEO Sam Altman of deviating from the company's initial charitable purpose when it began receiving billions of dollars in investment from Microsoft Corp. in 2019. Musk was involved in OpenAI's founding in 2015 but left its board in 2018. He subsequently launched his own AI venture, xAI, in 2023.
OpenAI, as the report notes, has defended its restructuring plans, asserting that the new structure would still advance its charitable goals. The company argues that the nonprofit would retain a significant stake in the future for-profit entity, which would operate as a public benefit corporation with obligations to both shareholders and the public. OpenAI has stated that the restructuring is necessary to attract investment and fund its mission, Bloomberg reported.
OpenAI on the for-profit status
In a statement quoted in the report, OpenAI said, "Our board has been very clear: our nonprofit isn’t going anywhere and our mission will remain the same. We’re turning our existing for-profit arm into a Public Benefit Corporation — the same structure as other AI labs like Anthropic — where some of these former employees now work — and xAI."
Bloomberg's reporting points out that the former employees' filing emphasizes OpenAI's 2018 charter, which declared that the startup "is not organized for the private gain of any person" and would focus on ensuring the safe use of AI. Some of these former employees, Bloomberg notes, have previously voiced concerns about OpenAI's ability to balance safety considerations with the commercialization of its technology.
Marc Toberoff, Musk's attorney, stated that the friend-of-the-court filing by the former employees "confirms what we already knew," according to Bloomberg.
"Altman presented OpenAI’s charitable mission as binding and used it as prop to seduce and exploit the contributions of Musk and top AI talent," Toberoff said in a statement reported by Bloomberg.
Elon Musk and OpenAI jury trial to begin in spring next year
Elon Musk's lawsuit against OpenAI will go to a jury trial in spring 2026, the federal judge presiding over the case decided recently. OpenAI and Musk have agreed to fast-track a trial over OpenAI's for-profit shift, the latest turn in legal fight between the world's richest person and OpenAI CEO Sam Altman playing out publicly in court. The judge, Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California, had denied Musk's request to pause the ChatGPT maker's transition to a for-profit model and instead proposed an expedited trial.
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