Ex-OpenAI Employees Rally Against For-Profit Transition in Support of Elon Musk's Lawsuit
A new twist in the ongoing legal battle over the future of OpenAI has emerged. A group of former OpenAI employees has stepped forward to file a powerful amicus brief, publicly opposing the company’s transition from nonprofit to for-profit. As someone closely following the evolution of artificial intelligence and its ethical implications, I find this development especially significant—and troubling.
Why Ex-Employees Are Standing with Musk
On April 11, 2025, twelve former OpenAI team members—along with Harvard law professor and Creative Commons founder Lawrence Lessig—submitted an amicus brief in support of Elon Musk’s lawsuit against OpenAI. These employees, including research and policy leaders, assert that converting OpenAI to a for-profit public benefit corporation (PBC) would betray its original mission.
The message is clear: OpenAI’s unique nonprofit governance structure was a promise to its people, donors, and the broader public that AI development would be centered around humanity—not profits.
The Deep Roots of OpenAI’s Nonprofit Mission
OpenAI started in 2015 as a nonprofit with a bold charter—to develop artificial general intelligence (AGI) for the benefit of all. In 2019, the organization transitioned to a “capped-profit” model while still maintaining nonprofit oversight.
Now, OpenAI wants to shift once again, transforming its for-profit arm into a public benefit corporation, much like Anthropic and xAI. According to OpenAI, this shift will preserve its charitable goals while attracting necessary capital. But those who were once inside the organization see a different story unfolding.
The former employees argue that removing the nonprofit’s controlling stake would "fundamentally violate" the mission and commitments OpenAI made, both internally and externally. And I understand why they feel betrayed—these principles weren’t just marketing; they were embedded into the recruitment, culture, and governance of OpenAI.
Inside Testimonies Highlight a Stark Reality
The amicus brief includes testimonies that illustrate just how seriously OpenAI employees once took its nonprofit structure. CEO Sam Altman reportedly emphasized in a 2020 all-hands meeting that nonprofit governance was vital to ensuring safety and avoiding short-term profit temptations.
OpenAI's structure wasn't just a technicality—it was a powerful recruitment and retention tool. Candidates were drawn to OpenAI because it wasn’t like Google or Facebook. It was supposed to be better. Many of those who stayed did so because they believed in the ethical framework laid out in the organization's charter.
What’s at Stake with a For-Profit Shift
If OpenAI is allowed to go fully for-profit, it could mean real consequences for the safety and accessibility of AGI. The brief warns that OpenAI may cut corners on safety to please shareholders and could potentially ignore the "merge and assist" clause in its own charter—an agreement to stop competing and help other responsible AGI efforts if another organization reaches the goal first.
This isn't just a bureaucratic reshuffling. It’s a philosophical transformation that could reshape the future of AI as we know it. And I’m concerned that this move would prioritize narrow financial interests over broader human well-being.
Growing Legal and Ethical Pressure
This legal challenge from Musk and the ex-OpenAI employees isn’t happening in a vacuum. Advocacy groups, nonprofits, and even labor unions like the California Teamsters have petitioned California Attorney General Rob Bonta to block OpenAI’s for-profit shift. They argue the company is neglecting its fiduciary duties and exploiting charitable assets for gain.
Another nonprofit, Encode, which supported California’s SB 1047 AI safety bill, submitted a similar amicus brief late last year.
OpenAI’s Defense: A New Kind of Nonprofit?
OpenAI has responded by insisting that the nonprofit isn’t going anywhere. The company claims that the conversion to a PBC would allow it to raise billions—some of which would be directed toward education, science, and healthcare.
“We’re actually getting ready to build the best-equipped nonprofit the world has ever seen,” OpenAI wrote on X.
Still, the clock is ticking. Reports suggest OpenAI must complete this transition within a year or risk losing major capital commitments.
My Take: The Soul of AI Is on the Line
This case isn’t just about corporate structure—it’s about trust, accountability, and the future direction of AI. I believe OpenAI’s original nonprofit model was its most important feature. It gave the organization a moral compass in a world that’s too often steered by shareholder returns.
Seeing former employees speak out—at the risk of reputational or professional fallout—shows just how deeply they believed in OpenAI’s founding mission. And I think we should take their warnings seriously.
This legal battle will shape not just OpenAI’s future but potentially the future of artificial general intelligence worldwide. Let’s not lose sight of why OpenAI was created in the first place.
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