Former OpenAI Employees Rally Behind Elon Musk in Legal Battle Against OpenAI

A significant development unfolded as a group of former OpenAI employees filed an amicus brief supporting Elon Musk’s lawsuit against OpenAI. The lawsuit centers on OpenAI’s controversial decision to transition from a non-profit entity to a for-profit corporation, a move that has sparked widespread debate about the organization’s adherence to its founding mission.

The proposed brief includes twelve ex-OpenAI employees: Steven Adler, Rosemary Campbell, Neil Chowdhury, Jacob Hilton, Daniel Kokotajlo, Gretchen Krueger, Todor Markov, Richard Ngo, Girish Sastry, William Saunders, Carrol Wainwright, and Jeffrey Wu. These individuals argue that if OpenAI’s non-profit relinquishes control over its business operations, it would fundamentally undermine its core values and objectives.

Several of these former employees have been vocal critics of OpenAI’s practices in the past. Gretchen Krueger has emphasized the need for greater accountability and transparency within the company. Daniel Kokotajlo and William Saunders previously expressed concerns about OpenAI’s aggressive pursuit of AI dominance, labeling it “reckless.” Meanwhile, Carrol Wainwright has publicly questioned whether OpenAI can be trusted to fulfill its promises regarding responsible AI development.

In response to these allegations, an OpenAI spokesperson maintained that the organization’s non-profit status remains intact. According to the spokesperson, the transition involves restructuring the existing for-profit arm into a public benefit corporation (PBC), similar to other AI labs such as Anthropic. This move, the spokesperson claims, will not alter OpenAI’s mission or commitments.

Understanding OpenAI’s Evolution and Mission

Founded in 2015 as a non-profit, OpenAI shifted to a “capped-profit” model in 2019 while retaining its non-profit wing, which holds a controlling stake in its corporate operations. Now, the organization aims to restructure further into a PBC. Elon Musk’s lawsuit accuses OpenAI of deviating from its original mission to ensure AI research benefits all humanity. Although a federal judge denied Musk’s request for a preliminary injunction to halt the conversion, the case is set to proceed to a jury trial in spring 2026.

The amicus brief filed by the former employees underscores the importance of OpenAI’s current structure—a non-profit overseeing a network of subsidiaries—as integral to its strategy and mission. The brief warns that restructuring to remove the non-profit’s governing role would violate OpenAI’s charter commitments and betray the trust of employees, donors, and stakeholders who aligned with the organization based on these principles.

“OpenAI committed to key principles in their charter document,” the brief states. “These commitments were treated internally as binding, and the court should recognize that preserving the nonprofit’s governance is essential to ensuring artificial general intelligence (AGI) benefits humanity rather than serving narrow financial interests.”

Recruitment and Governance Concerns

Artificial general intelligence, or AGI, refers to AI systems capable of performing any intellectual task a human can. The brief highlights how OpenAI leveraged its unique governance structure as a recruitment tool, assuring candidates and employees that non-profit oversight was critical to prioritizing safety and societal benefits over short-term profits. During an all-hands meeting in late 2020, OpenAI CEO Sam Altman allegedly emphasized the paramount importance of the non-profit’s governance in maintaining this balance.

The brief recounts instances where OpenAI used its governance model to differentiate itself from competitors like Google and Anthropic during recruitment discussions. It also served as a persuasive factor for employees contemplating leaving for rival organizations.

Potential Risks of For-Profit Conversion

Should OpenAI proceed with its conversion to a for-profit entity, the brief cautions that the organization might compromise on safety measures and prioritize shareholder interests. A for-profit OpenAI could disregard the “merge and assist” clause in its charter, which commits the organization to collaborate with value-aligned projects that achieve AGI before it does.

This filing joins a growing chorus of opposition to OpenAI’s transition. Earlier this week, a coalition of organizations, including non-profits and labor groups like the California Teamsters, urged California Attorney General Rob Bonta to intervene. They argue that OpenAI has neglected its charitable obligations and is undermining its mission to advance safe AI technologies.

Encode, another non-profit organization, echoed these concerns in a December amicus brief. OpenAI, however, asserts that the conversion will bolster its non-profit arm with resources dedicated to charitable initiatives in healthcare, education, and science. In exchange for its controlling stake, the non-profit reportedly stands to gain billions of dollars.

“We’re preparing to create the most well-equipped nonprofit the world has ever seen,” OpenAI stated in a series of posts on X. The organization faces a tight deadline to complete its transition by the end of this year or next, risking the loss of recently raised capital if it fails to do so.

The outcome of this legal battle carries significant implications for OpenAI’s future and its ability to uphold its original vision of advancing AI for the greater good.