Ex-OpenAI Employees Support Musk in Legal Battle Over Nonprofit Conversion

Ex-OpenAI employees back Musk in a lawsuit against OpenAI's nonprofit-to-profit conversion, arguing it violates the organization's mission. The case highlights concerns about prioritizing financial gains over ethical AI development.

A group of former OpenAI employees has filed a proposed amicus brief supporting Elon Musk in his lawsuit against OpenAI. The lawsuit challenges OpenAI's plan to transition from a nonprofit to a for-profit corporation. The brief, filed by Harvard law professor Lawrence Lessig, argues that such a conversion would fundamentally violate OpenAI's mission. The brief includes the names of 12 former employees, who have previously criticized OpenAI's practices. They argue that the nonprofit's control is crucial to maintaining the organization's mission of ensuring AI benefits humanity.

The brief highlights concerns that a for-profit OpenAI might prioritize financial gains over safety and ethical considerations. It warns that the conversion could lead to cutting corners on safety work and concentrating AI power among shareholders. The ex-employees assert that OpenAI's unique governance structure was a key factor in attracting talent and differentiating it from competitors like Google and Anthropic.

OpenAI, founded as a nonprofit in 2015, transitioned to a "capped-profit" model in 2019 and is now seeking to become a public benefit corporation (PBC). The organization claims that this restructuring will preserve its nonprofit arm and enhance its ability to fund charitable initiatives in sectors like healthcare and education. However, critics argue that the move undermines OpenAI's original mission and commitments.

The legal battle continues as a federal judge has allowed the case to proceed to a jury trial in 2026. Meanwhile, OpenAI maintains that its mission remains unchanged and that the nonprofit will continue to play a significant role in its operations. The outcome of this case could have significant implications for the future governance of AI research and development.