On Friday, OpenAI stated that Tesla Inc. (NASDAQ:TSLA) and xAI CEO Elon Musk initially supported a for-profit structure but exited the company after negotiations broke down over control, rather than mission.
OpenAI pushed back against Musk’s lawsuit, accusing the billionaire of selectively using internal documents to misrepresent the company’s origins and its shift to a for-profit structure.
In a detailed blog post, OpenAI said Musk agreed as early as 2017 that developing artificial general intelligence would require a for-profit entity alongside a nonprofit — the same structure OpenAI operates under today — but later sought absolute control and walked away when those demands were rejected.
According to OpenAI, internal call notes and private journal entries show Musk actively discussed transitioning from a purely nonprofit model to a structure that could raise billions of dollars while maintaining a philanthropic mission.
«The truth is that we and Elon agreed in 2017 that a for-profit structure would be the next phase for OpenAI,» the company said, adding that Musk even explored forming a public benefit corporation, or PBC, shortly after those discussions.
OpenAI argues Musk’s lawsuit ignores this broader context by highlighting selective excerpts that portray OpenAI leaders as secretly pursuing a for-profit model without his knowledge.