The dispute between Elon Musk and Sam Altman has flared up intensely with lawsuits related to the plan to transition OpenAI from a non-profit organization to a for-profit model.
Elon Musk believes this is a betrayal of OpenAI's original mission, while the company asserts that the transition is necessary to face the enormous costs of building AI infrastructure.
MAIN CONTENT
The legal controversy between Elon Musk and OpenAI revolves around the transition of the organizational model.
Midas Project submits an IRS complaint accusing Sam Altman and the board of directors of conflicts of interest.
OpenAI counters with a lawsuit against a competitor showing signs of illegal lobbying.
What controversies has OpenAI faced regarding the transition of its organizational model?
According to CEO Sam Altman, the transition from non-profit to for-profit helps OpenAI maintain the ability to develop complex AI technology at high costs.
In contrast, Elon Musk opposes this plan, viewing it as a betrayal of the organization's original principles. Following public pressure, OpenAI has stepped back, only converting part of the model to for-profit, but this has not satisfied all parties.
"The model transition is just a legal loophole to avoid core issues," said Marc Toberoff, Elon Musk's attorney, July 2025.
Marc Toberoff, attorney representing Elon Musk, 2025
What complaint has the Midas Project filed regarding Sam Altman's conflict of interest?
Based on potential fraud, the Midas Project has submitted a complaint to the Internal Revenue Service (IRS), accusing Sam Altman of simultaneously holding the position of CEO of the for-profit branch and being a member of the non-profit board, leading to serious conflicts of interest.
This complaint warns of the potential for Altman to reap financial benefits of billions of dollars, undermining the control of the non-profit board and affecting the mission of developing AI for the public good.
"The rapid development of AI technology requires OpenAI to seriously adhere to legal standards and public interest."
Tyler Johnston, Director of the Midas Project, 2025
The complaint also accuses OpenAI of using non-profit grants, such as the NextGenAI program worth $50 million, to favor customers of the for-profit branch.
How does OpenAI respond to accusations and external pressures?
Despite facing pressure, OpenAI does not abandon the plan to become a for-profit organization. The company is suing a non-profit organization in California named CANI, accusing this group of violating lobbying laws to prevent OpenAI's transition.
OpenAI suspects that CANI has an indirect connection to Elon Musk through real estate assets related to Tesla, although CANI denies any such connections and asserts that it is an independent grassroots organization.
These efforts to expand investigations and litigation show that competitive tensions in the AI field are intensifying and pose serious legal challenges to OpenAI's market dominance.
What will happen next to OpenAI and the AI ecosystem?
Currently, the California Political Fairness Commission and the Attorney General's office are reviewing related complaints. The decisions of these agencies will directly affect OpenAI's development strategy and power in the global AI market.
The issue of conflicts of interest at the leadership level and the operational model of the hybrid model (part profit, part non-profit) remains a tricky problem, demanding greater transparency to build trust among the community and stakeholders.
Frequently Asked Questions
Why does OpenAI want to transition its organizational model?
The transition helps OpenAI raise significant financial resources to meet the costs of developing modern AI technology and scaling.What does Elon Musk oppose in this plan?
Musk argues that the transition undermines OpenAI's original mission along with the risk of conflicts of interest leading to legal consequences.What does the Midas Project voice in this case?
They accuse Sam Altman and some board members of abusing their positions for personal gain, violating U.S. tax laws applicable to non-profit organizations.What is CANI and how is it related?
CANI is a non-profit organization that OpenAI is suing for allegedly engaging in illegal lobbying to obstruct OpenAI's transition plan.How will California's decision affect this?
The investigation's results could significantly impact OpenAI's business model and market control over AI in the future.
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