OpenAI has fired back at Elon Musk and one of its Co-founders after the billionaire asked a federal court in November to halt the company from transitioning to a for-profit business.
In a recent twist of event, OpenAI in a blog post on its website titled “Elon Musk wanted an OpenAI for profit”, listed the timeline of events coupled with emails, showing that Musk wanted OpenAI as a for-profit organization.
The company noted that in 2017, Musk not only wanted but created a for-profit as OpenAI’s proposed new structure. OpenAI noted that when Musk didn’t get major equity and full control, he walked away.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
OpenAI wrote,
“Elon Musk’s latest legal filing against OpenAI marks his fourth attempt in less than a year to reframe his claims. However, his own words and actions speak for themselves. In 2017, Elon not only wanted but actually created a for-profit as OpenAI’s proposed new structure. When he didn’t get majority equity and full control, he walked away and told us we would fail. Now that OpenAI is the leading research lab and Elon runs a competing AI company, he is asking the court to stop us from effectively pursuing our mission.
“You can’t sue your way to AGI. We have great respect for Elon’s accomplishments and gratitude for his early contributions to OpenAl, but he should be competing in the marketplace rather than the courtroom. It is critical for the U.S. to remain the global leader in Al. Our mission is to ensure AGI benefits all of humanity, and we have been and will remain a mission-driven organization. We hope Elon shares, that goal, and will uphold the values of innovation and free market competition that have driven his own success.”
On February 20, 2018, OpenAI revealed that Musk hosted a goodbye all-hands with the team. The company noted that Musk urged them to pursue the path to raising billions per year. He further noted that he would pursue advanced AI research at Tesla.
Fast forward to 2023, Elon Musk launched his AI firm xAI as a direct competitor to take on OpenAI. In March 2023, Musk Co-signed an open letter calling for a pause in training systems more powerful than GPT-4. Since only OpenAI had a GPT-4-level system at that time, it was a call for only OpenAI to stop development.
Recall that earlier this month, Musk intensified his legal pursuit against OpenAl, filing a motion for a preliminary injunction to block the company’s transformation into a for-profit entity. The lawsuit, filed by Musk, his Al venture xA1, and former OpenAl board member Shivon Zilis, alleges that OpenAl’s shift towards profit-driven goals violates its original nonprofit mission and poses a threat to competition. Musk’s core argument centers on OpenAl’s alleged monopolistic behavior and its restrictive, agreements with investors.
He argues that the company’s acceptance of billions in funding from Microsoft in 2019 marked a significant departure from its founding principles, leading to a focus on maximizing profits rather than advancing Al for the benefit of humanity. He also accuses OpenAl of entering agreements that allegedly violate federal antitrust laws, including deals that he claims restrict funding for potential competitors.
OpenAI has so far emerged as one of the biggest AI startups in recent years, with its flagship product ChatGPT, becoming a major hit that has helped usher massive corporate enthusiasm over AI and related large language models. Musk’s lawsuit against the company is more than a legal challenge, but a referendum on the evolving role of profit, governance, and ethics in AI development.