Musk Asks Court to Give Potential Winnings in OpenAI Suit to OpenAI's Nonprofit

Key Points:

• Elon Musk is suing OpenAI and Microsoft for $134 billion, alleging fraud in shifting OpenAI from a nonprofit to a for-profit entity, and has amended his claim to have damages awarded to OpenAI’s nonprofit arm.
• Musk demands the removal of OpenAI CEO Sam Altman and President Greg Brockman, requiring them to surrender all equity and financial benefits gained from OpenAI’s for-profit operations to the nonprofit.
• Musk, a co-founder and early investor in OpenAI, left the company after disagreements and launched a competitor, xAI, which made a $97.4 billion unsolicited bid to acquire OpenAI in February 2025.
• OpenAI transitioned from a nonprofit to a capped for-profit in 2019, then to a for-profit public benefit corporation in late 2024, and plans an IPO potentially in late 2025, shortly after Musk’s xAI and SpaceX market debuts.
• Musk claims he was misled about OpenAI’s nonprofit status to secure investments, while OpenAI denies these allegations; however, a New Yorker report reveals Musk was involved in early discussions about making OpenAI for-profit and sought majority control.