Musk Requests Court to Award OpenAI Lawsuit Earnings to Its Nonprofit
Elon Musk has filed a lawsuit seeking over $134 billion in damages from OpenAI and Microsoft, alleging fraud regarding the transition of OpenAI from a non-profit to a for-profit entity. In a recent amendment to his lawsuit, Musk requested that any awarded damages be directed to OpenAI’s non-profit arm. He also demanded the removal of two key executives, CEO Sam Altman and President Greg Brockman, who he claims benefited personally from OpenAI’s for-profit operations.
Musk’s Background with OpenAI
Musk co-founded OpenAI in 2015, initially established as a non-profit artificial intelligence lab. However, his relationship with the organization soured over time, leading him to resign from the board and eventually create his AI venture, xAI, in 2023. Musk’s company reportedly made an unsolicited bid of $97.4 billion to acquire OpenAI in February 2025.
Transition to For-Profit
OpenAI restructured itself in stages: first becoming a “capped” for-profit organization in 2019, then transitioning fully to a for-profit public benefit corporation in late 2022. The company is now reportedly preparing to file for an IPO, potentially by the end of this year. This change has prompted Musk to claim he was misled about the funding intentions behind the establishment of OpenAI.
Allegations and Legal Proceedings
Musk’s lawsuit claims that OpenAI and its executives took advantage of the organization’s initial non-profit status while secretly planning its conversion to a for-profit model. He argues that this shift was aimed at generating substantial wealth for Altman, Brockman, Microsoft, and other investors.
- Claims that OpenAI benefited from tax exemptions and donor contributions under the guise of a non-profit.
- Musk seeks to “unwind” the conversion of OpenAI back to non-profit status.
- OpenAI denies all allegations, asserting that Musk’s lawsuit is a tactic to protect his interests.
Investigation Requests and Pending Trial
As the legal battle heats up, OpenAI has requested investigations into Musk and Meta for alleged anti-competitive practices. The case is set to go to trial later this month, marking another critical juncture in the ongoing dispute between Musk and OpenAI.
