Elon Musk and OpenAI CEO Sam Altman are set to clash in court on Tuesday over OpenAI’s plans to convert into a for-profit entity. The billionaire co-founder of xAI filed a lawsuit against OpenAI, alleging the company initially aimed to develop AI for humanitarian purposes but now focuses on making money.
Musk claims OpenAI breached its original mission and must be stopped from transitioning to a profit-driven model. However, OpenAI maintains it needs to convert to secure funding for AI development. The company’s last fundraising round raised $6.6 billion, with plans for up to $25 billion, conditioned on restructuring the nonprofit.
Nonprofit conversions are rare in tech, according to Rose Chan Loui, UCLA Law Center executive director. Typically, they occur in healthcare organizations like hospitals. This move would be unusual for a venture capital-backed company like OpenAI.
Source: https://eu.usatoday.com/story/money/2025/02/04/elon-musk-openai-nonprofit-conversion/78228396007