OpenAI responds to Elon Musk's lawsuit, highlighting his support for for-profit structure
Date
12/15/2024 4:25:37 AM
(MENAFN) OpenAI is resisting Elon Musk’s most recent effort to modify his lawsuit against the AI company, which seeks to block OpenAI from transitioning to a for-profit model. In both a blog post and a legal filing, OpenAI pointed out that Musk had previously advocated for such a shift years ago.
Musk, who co-established OpenAI in 2015 alongside CEO Sam Altman, Ilya Sutskever, Greg Brockman, and others, parted ways with the company in early 2018. This followed his inability to gain control as its majority shareholder and CEO, and his subsequent attempt to persuade the founders to merge OpenAI with Tesla. In March 2023, Musk launched xAI, a competitor to OpenAI.
In March 2024, Musk initiated a lawsuit against OpenAI, claiming that the company violated its founding mission as a nonprofit by adopting a for-profit structure. OpenAI has pushed back against this legal action, which was initially withdrawn and refiled during the summer, and highlighted Musk’s prior support for a for-profit structure in both a new blog post and legal filing.
OpenAI pointed out that in email exchanges with fellow co-founders, Musk questioned whether the company should have a nonprofit structure before it was publicly revealed in November 2015. He had written in an email that the "structure doesn't seem optimal … Probably better to have a standard C corp with a parallel nonprofit."
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