Elon Musk to Openai: The lawsuit remains [May 2025]

Even as Openai backed off on the decision to convert to traditional for-profit, Elon Musk continued to file lawsuits against the company.

“There is no change in today's announcement that Openai will still develop closed AI for the interests of Altman, his investors and Microsoft,” Musk's attorney Marc Toberoff said in a statement to Reuters on Monday. The decision to manage Openai by nonprofits “has obscured critical details about the “non-profit control” arrangement, Toberoff said.

OpenAI plans to transition its for-profit limited liability company to Public Welfare Company (PBC), which will be governed by the overall nonprofit organization and will make the nonprofit a shareholder of the PBC. Toberoff described the new arrangement as “a substantial reduction in ownership that nonprofits will gain in Altman’s for-profit businesses.”

The Chatgpt Maker's decision to reorganize into a for-profit company last year prompted Musk to be an early funder of Openai's new era to sue the company for breach of contract. He claims the company is completely selfless by promising its mission. Recently, Musk failed to buy Openai for $97.4 billion, which Openai refused, calling it a “fake bid” and accusing Musk of trying to beat its competitors. Musk owns Xai, which makes Grok AI Chatbot.

Openai's decision to keep cap-for-profit is a major reversal for the company, which is currently worth $300 billion. Openai Board Chairman Bret Taylor said in a blog post that the decision was “a time to hear from the citizen leader and have a constructive conversation with the offices of the Delaware Attorney General and the California Attorney General.” Last month, former OpenAI staff and leaders of the AI ​​community sent an open letter to California and Delaware attorneys urging them to stop the restructuring of Openai on the grounds of social security concerns.

Openai may alleviate signatories’ concerns, but Musk’s lawsuit is still ongoing. Toberf told Bloomberg.