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Twelve Former Employees Back Musk in Court Fight Over OpenAI’s Structure

 |  April 13, 2025

A group of twelve former OpenAI staff members have entered the legal fray between Elon Musk and OpenAI, filing a court brief Friday in support of Musk’s lawsuit that challenges the organization’s shift away from nonprofit control, according to Reuters.

The filing marks a significant development in an ongoing dispute over the governance and purpose of one of the world’s leading artificial intelligence companies. The former employees, who held technical and leadership positions at OpenAI, expressed concern that changes to the company’s structure could jeopardize its founding commitment to developing AI for the public good.

Per Reuters, Musk launched his lawsuit against OpenAI and CEO Sam Altman last year, alleging that the company had abandoned its original mission of prioritizing humanity over profit. Musk, who co-founded OpenAI in 2015 before departing in its early years, claims the organization’s pivot toward investor control contradicts the principles upon which it was built. OpenAI has rejected these claims, maintaining that its core mission remains unchanged.

The former employees echoed Musk’s concerns in their filing, warning that removing the nonprofit’s controlling role over OpenAI’s for-profit operations would “fundamentally violate” the entity’s purpose. They emphasized that the nonprofit structure was not only central to the company’s strategy, but also instrumental in attracting talent who were inspired by its altruistic goals.

Read more: Copyright Lawsuits Against OpenAI and Microsoft Consolidated in New York

According to Reuters, OpenAI has argued that loosening the nonprofit’s grip is necessary to secure greater investment, which it says is essential for long-term growth. The company insists that the nonprofit will still hold a financial stake and benefit from the value created by the for-profit arm, allowing it to continue pursuing its mission with greater resources.

In response to the legal challenge, OpenAI stated, “Our Board has been very clear: our nonprofit isn’t going anywhere and our mission will remain the same.”

Meanwhile, the legal battle between Musk and OpenAI is slated to reach a jury trial next spring. Tensions have been further heightened by Musk’s launch of a rival AI company, xAI, in 2023. Altman has previously accused Musk of attempting to hinder a competitor through the legal system.

Source: Reuters