On Friday, OpenAI released a series of internal emails, text messages, and legal filings, revealing that Elon Musk’s injunction against the company’s transition to a for-profit model was in direct contradiction to his vision in 2017. Musk, CEO of Tesla and SpaceX, was an early investor in OpenAI and initiated legal proceedings against the company in March 2024, claiming they never intended to become a for-profit entity. However, the documents and email exchanges between co-founders Sam Altman, Ilya Sutskever, Greg Brockman, and Musk show that he actually wanted OpenAI to adopt a for-profit model. According to OpenAI, Musk had demanded majority equity, absolute control, and to be the CEO of the for-profit initiative.
OpenAI, known for its innovative products such as ChatGPT, began as a non-profit in 2015. In 2019, it adopted a “capped-profit” model to attract investment, allowing investors to earn returns up to a set limit, with any surplus directed back to the non-profit. By 2024, the company proposed restructuring into a public benefit corporation to secure more substantial funding for its AI research and development. Recently, OpenAI raised $6.6 billion in funds, led by Thrive Capital, NVIDIA, Microsoft, and Softbank Group.
The timing of the release of these documents, just before a preliminary court hearing between Musk and OpenAI scheduled for January 14, 2025, raises questions about the intent behind it. However, the documents do provide a timeline of events since OpenAI’s inception in 2015, indicating that Musk had been advocating for a financially efficient structure compared to a non-profit model. While OpenAI initially considered Musk’s terms, they later felt that his demands did not align with the company’s mission. OpenAI told Musk, “The goal of OpenAI is to make the future good and to avoid an AGI dictatorship.”
OpenAI has also faced criticism from other companies, including tech giant Alphabet, which owns Google and is a competitor of OpenAI. Alphabet has asked the Federal Trade Commission (FTC) to investigate Microsoft’s partnership with OpenAI, claiming that companies that use OpenAI’s technology may have to pay an additional cost if they do not use Microsoft’s servers to run it.
In summary, the released documents reveal that Musk had been advocating for a for-profit model for OpenAI, but his demands for control and majority equity were not accepted by the company. The timing of the release of these documents, just before a court hearing, raises questions about the intent behind it. OpenAI has also faced criticism from other companies, including Alphabet, for its partnership with Microsoft.
