The world's richest man is now in court, accusing his former collaborators of fraud. In an ongoing lawsuit against OpenAI, Elon Musk has admitted that he felt thoroughly deceived – and that he was wrong to believe the company would stick to its original mission of developing artificial intelligence for the benefit of humanity, without commercial motives. According to E24, Musk reportedly stated that he “was a fool” for agreeing to the premises.
From Non-Profit Foundation to 500 Billion Dollars
To understand Musk's frustration, it is necessary to look at how OpenAI has changed since its founding.
In December 2015, OpenAI was established as a non-profit research organization in Delaware. Its original mission was clearly formulated: to advance artificial intelligence “in the way that is most likely to benefit humanity as a whole, without being constrained by the need to generate financial returns.” Among the founders were Sam Altman and Elon Musk, and up to one billion dollars in capital was promised from various contributors. However, according to tax filings, the company had only received 133.2 million dollars by 2021.
The Profit Cap Was Removed
Already in 2019, OpenAI recognized that the non-profit model would not be able to attract enough capital for ambitious AGI research. The company therefore established a subsidiary called OpenAI LP, a “capped-profit” company where investors could receive a limited return – originally capped at 100 times the invested amount. Profits beyond this limit were to go back to the non-profit entity.
But it didn't stop there. In October 2025, OpenAI was converted into a Delaware-based Public Benefit Corporation (PBC), known as OpenAI Group PBC. The original non-profit entity was renamed OpenAI Foundation and today holds a 26 percent stake in the new company. The profit cap for investors was removed in connection with the restructuring.
Mission Statement Has Changed
One detail that has prompted criticism is that the phrase “safely” was removed from OpenAI's official mission statement as reported to US tax authorities in 2024. The reference to the company being “without the need for financial returns” is also gone. The current formulation simply reads: “OpenAI's mission is to ensure that artificial general intelligence benefits all of humanity.”
Musk claims the restructurings and the removal of safety language are proof that OpenAI has abandoned its original non-profit purpose in favor of profit.
It is precisely this shift that Musk uses as the foundation for his lawsuit. He argues that he would never have helped found the company – or donated money to it – if he had known it would end up as a commercial enterprise driven by profit motives.
OpenAI Rejects the Accusations
OpenAI, for its part, claims that the restructuring was necessary and does not represent a breach of the original mission. The company argues that the PBC model actually strengthens accountability, as a Public Benefit Corporation is legally obligated to balance profit goals with the company's stated social mission and consideration for all stakeholders – including employees, customers, and local communities.
Microsoft currently owns about 27 percent of OpenAI Group PBC, while current and former employees, along with other investors, collectively control the remaining 47 percent.
The Lawsuit Highlights a Broader Debate
The lawsuit between Musk and OpenAI is more than a personal conflict between two tech figures. It brings to light a fundamental question that characterizes the entire AI industry: can companies with commercial stakeholders genuinely commit to developing artificial intelligence in a way that prioritizes the public good over shareholder returns?
Regardless of the outcome of the case, it is clear that OpenAI's transformation from a non-profit foundation to a company valued at over 4 trillion Norwegian kroner represents one of the most dramatic institutional metamorphoses in tech history – and that Elon Musk was not going to sit idly by.