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Elon Musk Pushes Forward With Lawsuit Against OpenAI

ByHilary Ong

May 9, 2025

Elon Musk Pushes Forward With Lawsuit Against OpenAI

It’s no surprise then, that Elon Musk recently filed a lawsuit against OpenAI. He alleges that the organization failed to follow their agreement when it adopted a for-profit model last year. For Musk, a one-time funder of OpenAI, that move betrays what the nonprofit’s charter principles were meant to protect. He calls into question our safety as a society overall in profound ways.

The suit originated on OpenAI’s growth into a for-profit organization, which Musk argues violates the company’s early mission. In light of this restructuring, Musk’s legal counsel — Marc Toberoff — assured that the lawsuit is still alive and kicking. He stated to Reuters, “Nothing in today’s announcement changes the fact that OpenAI will still be developing closed-source AI for the benefit of Altman, his investors, and Microsoft.”

Musk’s Legal Battle with OpenAI

Musk’s lawsuit is not the only big news on this front. Luckily, a coalition of former OpenAI staffers and other top minds in the AI community have risen to the occasion by sending an open letter to the attorneys general of California and Delaware. The letter calls on wide-ranging federal officials to halt OpenAI’s reorganization. It leaves open questions about the implications for society of this new for-profit arrangement.

Toberoff elaborated on these concerns, emphasizing that the restructuring “obscures critical details about the supposed ‘non-profit control’ arrangement,” which he argues dilutes the influence that the non-profit arm should have. He further criticized the “sharply reduced ownership stake the non-profit will receive in Altman’s for-profit enterprise.”

Musk’s legal complaints about OpenAI have intensified with his bid to take over the nonprofit. His previous offer of $97.4 billion was too a serious offer to OpenAI, one which the company accused him of submitting as a “sham bid.” OpenAI contended that Musk did this to sabotage a competitor. They noted the fact that he owns xAI, the sort of upstart AI firm that produces the Grok AI chatbot, which is like ChatGPT.

The latest installment in this still-unfolding drama exposes a deepening schism between Musk and OpenAI. As the lawsuit progresses, it emphasizes broader discussions within the tech community regarding ethical practices and safety measures in artificial intelligence development.

Author’s Opinion

Elon Musk’s lawsuit against OpenAI sheds light on growing concerns about the ethical implications of for-profit AI ventures. It highlights the risks of deviating from the nonprofit roots that aimed to serve broader societal interests, especially when it comes to controlling powerful technologies like AI.


Featured image credit: Heute

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Hilary Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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