OpenAI finds itself caught in a storm of scrutiny as it pushes forward with major structural changes. A group of former staff recently urged officials in California and Delaware to intervene, arguing the shift strays from the organization’s original nonprofit purpose. Authorities confirmed they’re examining the revised approach.
Meanwhile, key backers like Microsoft and SoftBank, whose hefty stakes depend on the overhaul’s completion, await terms that safeguard their interests. Under the updated framework, stakes would be distributed among workers, financiers, and the original nonprofit entity. Reports suggest Microsoft hasn’t yet endorsed the arrangement, seeking stronger assurances for its substantial commitment. The stance of other major players remains uncertain.
Elon Musk, OpenAI’s co-founder turned rival through xAI, has emerged as the most vocal critic. His aggressive $97 billion bid aimed to disrupt the transition by inflating the nonprofit’s valuation. Musk’s legal battle further complicates matters, alleging OpenAI strayed from its mission to democratize advanced AI.
While a recent court ruling slightly favored Musk, OpenAI’s leadership insists the case hasn’t influenced their strategy. Legal experts close to Musk argue the revised plan does little to address his core grievances, signaling the dispute is far from over.