Elon Musk and Meta Challenge OpenAI’s Move to For-Profit Status

The legal and regulatory battle intensifies as Musk and Zuckerberg align against OpenAI’s restructuring plans.

Elon Musk has filed a lawsuit seeking an injunction to block OpenAI's transition from a nonprofit to a for-profit public benefit corporation, citing concerns over its initial mission to benefit humanity.
Meta has joined Musk in opposing the restructuring, sending a letter to California's Attorney General warning of potential misuse of nonprofit resources for private gains.
OpenAI, led by CEO Sam Altman, argues the transition is necessary to attract investment, citing a projected $5 billion loss for 2024 and recent funding valuing the company at $157 billion.
Musk’s lawsuit includes allegations that OpenAI prioritizes profits over its charitable origins, while OpenAI claims Musk previously supported a for-profit model during his tenure with the organization.
The dispute is further complicated by political dynamics, with Musk advising President-elect Trump, raising concerns about potential influence on the case.