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Revised OpenAI Plan Doesn’t Deter Musk’s Lawsuit, Says Lawyer

 |  May 6, 2025

Elon Musk will proceed with his legal battle against OpenAI, according to his attorney Marc Toberoff, despite a newly proposed plan from the artificial intelligence firm to maintain control under its non-profit parent organization.

The announcement from Musk’s legal team came just hours after OpenAI revealed changes to its governance structure aimed at addressing criticism of its increasing commercial entanglements. Per Reuters, the revised plan would allow the non-profit board to retain control over the for-profit subsidiary and hold a significant ownership stake.

However, Musk’s team remains unconvinced. Toberoff criticized the updated framework, calling it insufficient and opaque. “Nothing in today’s announcement changes the fact that OpenAI will still be developing closed-source AI for the benefit of Altman, his investors, and Microsoft,” he stated, arguing that the revisions fail to address fundamental concerns about transparency and influence.

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According to Reuters, Musk originally co-founded OpenAI with a mission to develop artificial intelligence in a transparent and non-commercial manner. His lawsuit accuses the company of straying from that vision, particularly under the leadership of CEO Sam Altman and through partnerships with major investors like Microsoft.

OpenAI, in response, dismissed Musk’s claims. “Elon continuing with his baseless lawsuit only proves that it was always a bad-faith attempt to slow us down,” a spokesperson for the company said, according to Reuters.

Source: Reuters