The article details the contentious transformation of OpenAI from a non-profit to a for-profit entity, focusing on the dispute between Elon Musk and Sam Altman. According to court documents, Musk had proposed converting OpenAI to a for-profit company in 2017, intending to take control and merge it with Tesla. The proposal included a $1 billion investment from Tesla. However, Altman and other OpenAI leaders rejected this proposal, leading to Musk’s departure from the company in 2018. Ironically, OpenAI later converted to a “capped-profit” model in 2019, creating OpenAI LP, which Musk criticized as contradicting the organization’s original mission. The documents reveal that Musk’s earlier proposal included similar profit-capping mechanisms that OpenAI eventually adopted. The situation highlights the complex dynamics between AI development, profit motives, and organizational structure in the tech industry. The dispute continues to influence discussions about AI development and corporate governance, with Musk maintaining that OpenAI’s current structure betrays its founding principles of developing AI for humanity’s benefit. The revelations provide important context to the ongoing debate about the commercialization of AI research and the balance between profit incentives and public benefit in AI development.
Source: https://www.businessinsider.com/openai-elon-musk-sam-altman-for-profit-conversion-2025-2