OpenAI Doubles Down on Nonprofit Roots as Musk Legal Battle Escalates

Sam Altman’s AI juggernaut circles the wagons—turns out ’saving humanity’ doesn’t include sharing equity with former friends. Who could’ve predicted that?

Nonprofit status becomes legal shield as courtroom drama heats up. Meanwhile in Silicon Valley: another billionaire feud distracting from actual innovation. But hey—at least the lawyers are getting their ATH paydays.

OpenAI’s legal battle with Musk

OpenAI’s reversal comes as legal tensions with Elon Musk, one of its co-founders, intensify.

The Tesla CEO had accused the company of drifting from its founding mission and filed a lawsuit earlier this year to halt its shift toward profit-driven goals.

Notably, Musk had also made a $97 billion offer to buy OpenAI’s controlling nonprofit arm, which was not accepted.

In response to OpenAI’s announcement, Musk’s legal team reportedly dismissed the move as cosmetic.

The lawyers argued that the updated structure allows private parties, including Sam Altman and Microsoft, to benefit from assets originally intended for the public good.

Meanwhile, OpenAI also recently countersued Musk, alleging he attempted to sabotage the organization through a fake takeover offer and a coordinated campaign to damage its reputation.