Ex-OpenAI staffers file amicus brief opposing the company’s for-profit transition

Tech Crunch - Apr 11th, 2025
Open on Tech Crunch

A group of former OpenAI employees has filed an amicus brief supporting Elon Musk’s lawsuit against OpenAI, opposing its planned conversion from a non-profit to a for-profit corporation. The brief, signed by twelve ex-employees, argues that allowing OpenAI’s non-profit arm to lose control of the organization would fundamentally violate its mission to ensure AI research benefits all humanity. The employees, including notable figures like Gretchen Krueger and Daniel Kokotajlo, have previously criticized OpenAI’s practices, warning of a 'reckless' race for AI dominance. The brief asserts that OpenAI’s current non-profit control is essential to its mission and that restructuring could breach trust with stakeholders.

OpenAI, originally founded as a non-profit in 2015, transitioned to a capped-profit model in 2019 and now seeks to become a public benefit corporation. The conversion, if completed, might lead OpenAI to prioritize financial gains over safety and societal benefits, critics warn. The lawsuit, set for a jury trial in 2026, comes amid growing opposition, including petitions to California’s Attorney General by various non-profits and labor groups. OpenAI argues that the conversion would strengthen its non-profit arm by providing resources for charitable initiatives. However, the company faces a deadline to complete the conversion or risk losing capital raised recently, highlighting the high stakes involved.

Story submitted by Fairstory

RATING

7.2
Fair Story
Consider it well-founded

The article provides a detailed and timely examination of the legal and organizational challenges facing OpenAI, focusing on the opposition from former employees and Elon Musk. It scores well in terms of accuracy and clarity, presenting a coherent narrative of the events and concerns. However, it could benefit from a more balanced presentation of perspectives, particularly from current OpenAI representatives, and greater transparency regarding the sources of financial and legal claims. The story's engagement and impact are enhanced by the controversial nature of the topic and the involvement of high-profile figures, making it relevant to ongoing discussions about AI governance and corporate ethics.

RATING DETAILS

8
Accuracy

The story presents a detailed account of the legal and organizational challenges facing OpenAI, with specific references to an amicus brief filed by former employees and Elon Musk's lawsuit. The factual claims about the lawsuit, the amicus brief, and the structural changes within OpenAI are well-documented and align with known public information. However, certain aspects, such as the exact wording of OpenAI's charter commitments and the precise financial implications of the transition, would benefit from further verification. The story accurately reflects the concerns of the ex-employees and other organizations, but the potential financial gains for the non-profit arm are mentioned without detailed evidence or sources.

7
Balance

The article primarily focuses on the perspectives of former OpenAI employees and Elon Musk, providing a critical view of OpenAI's planned transition. While it mentions OpenAI's response, the coverage is less balanced in terms of presenting the company's perspective in detail. The voices of other stakeholders, such as current employees or investors, are not prominently featured, which could have provided a more rounded view of the situation. The article touches on the broader debate about AI governance but predominantly highlights opposition viewpoints.

8
Clarity

The article is well-structured, with a logical flow that guides the reader through the complex legal and organizational issues. The language is clear and accessible, making it easy to understand the main points and implications. However, some technical terms, such as 'artificial general intelligence' and 'public benefit corporation,' are not fully explained, which might challenge readers unfamiliar with these concepts.

6
Source quality

The article cites a group of former OpenAI employees and mentions Elon Musk's legal actions, both of which are credible sources given their direct involvement. However, the article lacks direct quotes or statements from current OpenAI representatives, which could have strengthened the source quality. The absence of external expert opinions or independent analysis on the implications of the transition also limits the depth of the source variety.

7
Transparency

The article provides a clear account of the events and the positions of the involved parties, but it lacks transparency regarding the methodology behind some claims, particularly financial projections and legal interpretations. While it mentions reaching out to OpenAI for comment, the lack of immediate response from the company leaves a gap in transparency. The article could improve by disclosing more about the sources of its financial and legal information.

Sources

  1. https://openai.com/index/elon-musk-wanted-an-openai-for-profit/
  2. https://electrek.co/2025/04/10/cracks-are-forming-in-elon-musks-armor-of-lies/