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Ex-OpenAI Employees Back Musk’s Lawsuit Against AI Giant
A collective of 12 former employees of OpenAI has requested judicial permission to express their concerns regarding the company’s shift from a nonprofit model to a for-profit entity, supporting Elon Musk in his ongoing legal battle with the artificial intelligence organization.
These individuals, who were part of OpenAI between 2018 and 2024, highlighted their involvement during crucial developmental phases of the organization. Their request, submitted to a California district court by attorney Lawrence Lessig, aims to bolster Musk’s claims against OpenAI, particularly his argument that the AI research initiative, which he co-founded in 2015 as a nonprofit, should not transition to a profit-driven model.
The legal filing asserts that a transition altering the corporate structure and undermining the nonprofit’s controlling status would fundamentally betray the organization’s original mission. This transformation, according to the document, would violate the commitments made to employees, donors, and stakeholders who initially supported OpenAI’s vision.
Currently under the leadership of CEO Sam Altman, OpenAI has pioneered a commercial path for its innovations, most notably with the highly popular ChatGPT chatbot, launched in late 2022. Despite the commercial successes, OpenAI still operates under a nonprofit parent entity and has faced challenges associated with its ambition to evolve into a for-profit structure. Musk has emerged as a key opponent in this pursuit, especially with the advent of his competing startup, xAI.
In February, Musk’s group proposed a substantial acquisition offer for OpenAI, valuing it at $97.4 billion, a bid that was promptly declined by the company. Recently, OpenAI secured a $40 billion funding round led by SoftBank, achieving a remarkable $300 billion valuation, marking it as a historic high in private tech funding.
OpenAI’s unique hybrid structure, established in 2019, comprises a capped-profit limited partnership where the original nonprofit remains the primary stakeholder. Under potential restructuring plans, the nonprofit would transition into an independent entity. Meanwhile, venture investors have been granted convertible notes allowing them to convert their investments into equity as the company evolves.
In the brief filed, Lessig emphasizes that shifting to a for-profit model would contradict OpenAI’s foundational goals and erode the trust built with its initial supporters.
The former employees mentioned in the filing include Steven Adler, Rosemary Campbell, Neil Chowdhury, Jacob Hilton, Daniel Kokotajlo, Gretchen Krueger, Todor Markov, Richard Ngo, Girish Sastry, William Saunders, Carrol Wainwright, and Jeffrey Wu. Some of these individuals have previously shared insights into their experiences at OpenAI.
The brief underscores that these former staffers maintain a vested interest in the case, given that it delves into essential aspects of OpenAI’s mission and infrastructure, which they actively contributed to during their tenure.
The ongoing dispute between Musk and OpenAI has evolved over several months, stemming from Musk’s allegations that the organization has strayed from its founding principle of advancing artificial intelligence for the greater good. Despite a recent federal district court ruling that obstructed Musk’s efforts to halt the company’s transition to a for-profit model, the legal battle continues to unfold.
In a notable development this week, OpenAI initiated a countersuit against Musk, accusing him of employing various strategies to undermine the organization. This action seeks both punitive damages resulting from Musk’s conduct and an injunction to prevent further interference in OpenAI’s operations.
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