Former OpenAI Employees Back Musk in Lawsuit Over For-Profit Shift

Ex-Staffers File Amicus Brief Against OpenAI’s Restructuring Plans

A group of 12 former OpenAI employees has filed an amicus brief supporting Elon Musk’s lawsuit against the AI company, challenging its transition from nonprofit to for-profit status. The document, submitted by Harvard law professor Lawrence Lessig, argues that the proposed changes would violate OpenAI’s founding mission.

Key Signatories and Their Concerns

The brief includes signatures from prominent former staff members:

• Steven Adler
• Rosemary Campbell
• Neil Chowdhury
• Jacob Hilton
• Daniel Kokotajlo
• Gretchen Krueger
• Todor Markov
• Richard Ngo
• Girish Sastry
• William Saunders
• Carrol Wainwright
• Jeffrey Wu

Several signatories have previously criticized OpenAI’s direction. Krueger has advocated for greater transparency, while Kokotajlo and Saunders warned about the company’s “reckless” pursuit of AI dominance. Wainwright has publicly questioned OpenAI’s commitment to ethical practices.

OpenAI’s Response and Current Structure

An OpenAI spokesperson maintained that:

• The nonprofit entity “isn’t going anywhere”
• The mission remains unchanged
• The transition involves creating a Public Benefit Corporation (PBC), similar to Anthropic and xAI

The company was founded as a nonprofit in 2015, adopted a “capped-profit” model in 2019, and now seeks PBC status while retaining nonprofit oversight.

Legal Context and Timeline

Musk’s lawsuit alleges OpenAI abandoned its humanitarian mission. Key developments:

• March 2025: Federal judge denied Musk’s injunction request
• Spring 2026: Jury trial scheduled
• Late ²⁰²⁵⁄₂₀₂₆: Deadline for conversion to avoid financial repercussions

Core Arguments in the Amicus Brief

The former employees present several critical concerns:

1. Mission Integrity

   • Current nonprofit control is “crucial” to OpenAI’s strategy
   • Restructuring would breach trust with employees and stakeholders

2. Recruitment and Retention Practices

   • Governance structure was a key differentiator from compe*****s
   • Used to persuade employees to join and stay with the company

3. Safety and Ethical Risks

   • For-profit status could incentivize cutting safety corners
   • Might abandon “merge and assist” charter commitments
   • Could concentrate powerful AI among shareholders

Broader Opposition to OpenAI’s Transition

The amicus brief joins growing resistance:

• California Teamsters and other groups petitioned the state Attorney General
• Nonprofit Encode filed a similar brief in December 2024
• Critics argue OpenAI is “subverting its charitable mission”

OpenAI’s Counterarguments

The company maintains that:

• The nonprofit will gain billions in resources
• Funds will support healthcare, education, and science initiatives
• Claims it’s building “the best-equipped nonprofit the world has ever seen”

The Stakes for OpenAI

The conversion carries significant implications:

• Must complete by late ²⁰²⁵⁄₂₀₂₆ to secure raised capital
• Current valuation: \(157 billion after \)6.6 billion funding round
• Potential to reshape AI governance landscape

The case continues to develop as both sides prepare for the 2026 trial, with the AI community closely watching this pivotal moment in tech ethics and corporate structure.

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