Musk's early support for for-profit structure exposed in new OpenAI legal filing

News Desk
December 16, 2024

OpenAI has released additional internal emails from co-founder Elon Musk, shedding light on his early push for the company to adopt a for-profit business model. The new revelations, posted in a blog and highlighted in a legal filing, are the latest twist in the ongoing legal battle between Musk and the AI startup.

In a Friday filing, OpenAI accused Musk of attempting to sabotage its progress while he focuses on developing his own AI venture, xAI. This follows a series of legal actions taken by Musk against OpenAI, including a federal court request last month to prevent the company from transitioning to a for-profit structure. Over the past year, Musk has filed two lawsuits in an attempt to stop OpenAI from making this shift, which he argues deviates from the company's original mission.

OpenAI’s latest blog post, titled "Elon Musk Wanted an OpenAI For Profit," detailed Musk’s early involvement in shaping the company’s business structure. According to the post, Musk not only advocated for but actively helped establish a for-profit framework in 2017. These emails contrast with Musk’s current public position, where he has criticised OpenAI’s transition to a for-profit model.

One email from November 2015, shared by OpenAI, shows Musk telling then-CEO Sam Altman that OpenAI’s non-profit structure “doesn’t seem optimal.” The post suggests that both Musk and OpenAI agreed that a for-profit model was the logical next step in the fall of 2017. However, OpenAI claims that when Musk did not secure majority equity, he walked away, predicting the company would "fail."

Musk officially stepped down from OpenAI’s board in 2018, though his legal team maintains that he continued to contribute to the company until 2020. OpenAI, in its filing, argued that Musk’s current actions were an attempt to block the company’s growth while he develops his own competing AI company.

In 2023, Musk launched xAI, a direct competitor to OpenAI, and has since released its Grok chatbot. OpenAI’s latest legal filing accuses Musk of attempting to stifle their efforts by using legal means, claiming, "Now that OpenAI is the leading AI research lab and Elon runs a competing AI company, he's asking the court to stop us from effectively pursuing our mission."

This latest filing follows a similar publication of Musk’s private emails in March, after he sued OpenAI and Altman. In a November 2015 email, Musk had suggested that OpenAI should announce a $1 billion funding commitment, promising to cover any funding gaps. The company also accused Musk of wanting OpenAI to merge with Tesla, potentially turning the AI startup into a “cash cow” for the electric vehicle giant.

OpenAI described Musk’s most recent legal filing as his fourth attempt to “reframe his claims” within the span of a year. The company’s blog concluded with a pointed remark: "You can't sue your way to AGI" (artificial general intelligence). "We have great respect for Elon’s accomplishments and gratitude for his early contributions to OpenAI, but he should be competing in the marketplace rather than the courtroom," it added.

Musk did not immediately respond to requests for comment from Business Insider.

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