Elon Musk proceeds with lawsuit against OpenAI after firm shelved plans to be a for-profit company

Tech billionaire Elon Musk has revealed that he is proceeding with his lawsuit against American artificial intelligence research organization, OpenAI after the firm owned by Sam Altman shelved plans to become a for-profit firm.

Through his attorney, Elon Musk disclosed this, claiming that OpenAI’s choice to continue being run as a charity “obscures critical details about the supposed ‘non-profit control’ arrangement.”

“Nothing in today’s announcement changes the fact that OpenAI will still be developing closed-source AI for the benefit of Altman, his investors, and Microsoft,” said Musk’s lawyer Marc Toberoff in a statement to Reuters on Monday. Toberoff said OpenAI’s decision to remain governed by a nonprofit entity “obscures critical details about the supposed ‘non-profit control’ arrangement.”

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Sam Altman, the CEO of OpenAI, declared on Monday that the firm that created ChatGPT will remain a nonprofit, renouncing a contentious plan to become a for-profit business.

Key investors were pressing for the adjustment to better ensure their profits, and the structural issue had grown to be a key bone of contention for the artificial intelligence (AI) pioneer.

“OpenAI is not a normal company and never will be,” Altman wrote in an email to staff posted on the company’s website.

“We made the decision for the nonprofit to stay in control after hearing from civic leaders and having discussions with the offices of the Attorneys General of California and Delaware,” he added.

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