Elon Musk Proceeds with OpenAI Lawsuit Despite Policy Shift

OpenAI keeps nonprofit control in major governance shift—Musk still pushing lawsuit over mission drift.

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Elon Musk Proceeds with OpenAI Lawsuit Despite Policy Shift

The ongoing drama between Elon Musk and OpenAI just took another twist—and no, it’s not an episode of Succession. On May 5, OpenAI dropped a governance bombshell, announcing it would maintain nonprofit control over its for-profit operations. But Musk isn’t impressed—and he’s not backing down.

According to his attorney Marc Toberoff, Musk plans to proceed with the high-profile lawsuit against the AI powerhouse. The Tesla and SpaceX CEO, who co-founded OpenAI back in the day, accuses the company of ditching its founding mission to develop artificial intelligence for public good.

OpenAI’s announcement revealed that instead of becoming a standard for-profit entity, it will transition its commercial arm into a Public Benefit Corporation (PBC). This model—used by other AI labs—allows them to raise capital while still prioritizing long-term safety and public benefit. The nonprofit parent will retain significant equity and final decision-making authority.

CEO Sam Altman emphasized that the shift followed talks with regulators and civic leaders, noting that it’s designed to help OpenAI scale safely while staying true to its core mission: making sure artificial general intelligence (AGI) benefits all of humanity.

But Musk’s legal team isn’t buying it. In filings, they claim this move is “purely cosmetic,” arguing that key stakeholders—including Altman and Microsoft—still stand to profit from resources meant for the public. Earlier this year, Musk even offered $97 billion to acquire control of OpenAI’s nonprofit governing body. That offer was rejected.

As if the tension wasn’t thick enough, OpenAI recently hit back with a countersuit, accusing Musk of trying to tank the organization with a fake buyout bid and smear campaign.

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Elon Musk Proceeds with OpenAI Lawsuit Despite Policy Shift

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