Former OpenAI Employees Rally Behind Musks Legal Challenge to Preserve Non-Profit Vision Amid Corporate Restructuring

A group of twelve ex-employees from OpenAI submitted a legal document on Friday in support of co-founder Elon Musk’s lawsuit aimed at preserving OpenAI’s non-profit status, representing the latest turn in the ongoing conflict regarding the future direction of the artificial intelligence organization.

Business executives are seeking to grant investors authority, raising various concerns and prompting Musk and others to file a lawsuit, asserting that commercial interests should take a backseat to humanitarian objectives.

Last year, Musk, who also leads the electric vehicle manufacturer Tesla, initiated legal action against OpenAI and its CEO Sam Altman, alleging that OpenAI has deviated from its original purpose of developing AI for the benefit of humanity rather than for corporate gain. Both OpenAI and Altman have refuted these claims.

In their filing with the federal court on Friday, the former employees argued that removing the nonprofit’s oversight would «seriously undermine» its mission, as it would eliminate control over the for-profit AI development division.

The ex-employees, who held technical and leadership positions at the company, emphasized that the oversight provided by the nonprofit was vital for the overall strategy, and during their tenure at the firm, OpenAI executives consistently highlighted the significance of this structure in achieving OpenAI’s objectives. They noted that this structure also played a key role in attracting talent, as many were inspired by the nonprofit’s mission.

OpenAI contends that it needs to relinquish the nonprofit’s controlling role to attract investment funds. The nonprofit is expected to maintain an ownership stake in OpenAI, which will grow more valuable as the company expands, thereby providing ample resources for the nonprofit to fulfill its mission, according to the company’s stance.

In an official statement, OpenAI asserted that this transition would not alter its mission: “Our Board has made it clear: our nonprofit remains intact and our mission will not change.”

Musk and Altman were co-founders of OpenAI in 2015, but Musk departed before the organization gained prominence in the tech world. His opposition to the structural changes has led to the current legal battle, with both parties slated to begin a jury trial in the spring of next year.

Additionally, Musk has recently established his own AI company, xAI, in 2023, and Altman has claimed that Musk has been attempting to hinder a rival.

OpenAI is also under pressure from investors to alter its organizational structure. To secure a $40 billion (approximately Rs. 3,44,386 crore) funding round, the company must complete its transition by the year’s end.

© Thomson Reuters 2025

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