"Musk sued OpenAI and its co-founders Sam Altman and Greg Brockman in 2024, alleging they betrayed their original contractual agreements by pursuing profits instead of the nonprofit's founding mission to develop AI that benefits humanity. Musk, who has launched his own for-profit company xAI, was an early financial backer and co-founder of OpenAI. He resigned from the board in 2018 after his bid to take over as CEO was rejected by the other co-founders, who put Altman up for the job."
"Since leaving OpenAI, he's been a vocal critic of the firm's transition to a for-profit model, and even made an unsolicited $97.4 billion bid to buy OpenAI in February 2025, which Altman rejected. OpenAI, which was founded in 2015 as a non-profit research lab, first began to move away from its pure non-profit roots in 2019 by creating a for-profit subsidiary with a "capped-profit" model that limited investor returns."
A U.S. judge found evidence supporting Elon Musk's claims and ruled his lawsuit against OpenAI will go to trial. Musk alleges OpenAI and its co-founders pursued profits contrary to original nonprofit agreements and the founding mission to develop AI that benefits humanity. Musk co-founded and early-funded OpenAI, resigned from the board in 2018, and later launched for-profit xAI. OpenAI shifted in 2019 by creating a for-profit subsidiary with a "capped-profit" model and completed a 2025 restructuring into a Public Benefit Corporation with the original nonprofit retaining 26% equity. Musk seeks monetary damages for about $38 million invested.
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