Tesla CEO Elon Musk has publicly criticised OpenAI’s potential move from a non-profit to a for-profit organisation, calling the shift “illegal.” As one of OpenAI’s founding members, Musk has raised serious concerns about what this change could mean for the organisation’s future.
In a recent tweet, he pointed out that OpenAI was created as a non-profit to tackle the risks associated with unchecked AI. “You can’t just convert a non-profit into a for-profit. That is illegal,” he stated. His comments come amid speculation that OpenAI is considering this shift to secure additional funding and accelerate its development.
According to Reuters, Microsoft-backed OpenAI plans to turn its core business into a for-profit benefit corporation, which would mean the non-profit board would no longer have control—a move that has further frustrated Musk.
Sources indicate that the OpenAI non-profit will continue to operate and hold a minority stake in the new for-profit entity. This change could also influence how the company manages AI risks under its new governance structure.
Reports suggest that Chief Executive Sam Altman may receive equity in the for-profit company for the first time, potentially valuing it at $150 billion following the restructuring. The company is also looking to lift the cap on investor returns.
Adding to the controversy, a recent post on X stated, “At this juncture, we require a federal investigation into Sam and the current situation at OpenAI. All signs suggest he is far from what he seems and is being allowed to wield power that someone like him should not have access to.”
While OpenAI has maintained its non-profit status, there is increasing pressure to explore alternative funding models to support its ambitious research agenda.
Musk’s criticism raises important questions about OpenAI’s future and what a for-profit model would mean for its mission and values.
While going for-profit could provide essential funding and resources, it raises concerns about prioritising commercial interests over ethical considerations. This shift might lead to reduced transparency and accountability, limiting public scrutiny and oversight.
On the flip side, a for-profit structure could encourage innovation and efficiency through increased competition, making AI technology more accessible to a wider range of organisations and individuals. However, this approach also carries the risk of monopolisation and a potential move away from open-source practices, which could hinder collaboration and progress within the AI community.