From non-profit to not-so-non-profit
Matt V
May 05, 2025
ALTMAN VS MUSK
Elon Musk’s legal battle with OpenAI and its CEO Sam Altman is officially moving ahead, after a US judge rejected OpenAI’s attempt to dismiss the case.
Musk, who helped found and fund OpenAI, says the company has gone back on its original non-profit mission by shifting to a for-profit structure, something he claims amounts to fraud and breach of contract.
He’s also pulled Microsoft into the mix, pointing to its major backing of OpenAI.
While the judge did throw out parts of the case, she ruled that there’s enough in Musk’s claims to move forward, including the idea that OpenAI misrepresented its structure to secure Musk’s support.
She also acknowledged there might be an “implied” agreement between Musk and the company, even if nothing formal was signed.
OpenAI can still appeal, but for now, the case is heading to trial in 2026.
Here’s what to note:
Musk’s lawsuit is going ahead, with a trial set for 2026.
He argues OpenAI broke its original non-profit promise.
The move to a for-profit model is still under heavy criticism.
AI for all… or just for profit?
The company says its shift to a public benefit corporation is about making it easier to raise investment, but some leading AI voices, like Geoffrey Hinton and Margaret Mitchell, say the change could shift control of powerful AI tech into the hands of profit-driven players.
Meanwhile, Musk’s own AI venture, xAI, is building similar tools, adding even more fuel to an already intense rivalry.
Musk vs Altman is the AI reality show we didn’t ask for.