OpenAI claims Elon Musk 'demanded absolute control, and to be CEO' while also agreeing to ditch its non-profit status back in 2017, despite him now suing it for turning decidedly for-profit

NEW YORK, NEW YORK - NOVEMBER 29: C.E.O. of Tesla, Chief Engineer of SpaceX and C.T.O. of X Elon Musk speaks during the New York Times annual DealBook summit on November 29, 2023 in New York City. Andrew Ross Sorkin returns for the NYT summit for a day of interviews with Vice President Kamala Harris, President of Taiwan Tsai Ing-Wen, C.E.O. of Tesla, Chief Engineer of SpaceX and C.T.O. of X Elon Musk, former Speaker of the U.S. House of Representatives Rep. Kevin McCarthy (R-CA) and leaders in business, politics and culture.
(Image credit: Michael M. Santiago/Getty Images)

The complex history between OpenAI and Elon Musk, former co-chair of said AI company, has taken an unexpected turn. The creator of ChatGPT has published a series of messages and emails that suggest Musk wanted the company to abandon its non-profit roots and go full-sail for-profit, the very thing that he is now suing OpenAI for doing.

We all know that AI involves billions of dollars. One can't build data centres full of thousands of massive GPUs, pay the energy bills, and hire staff to program them for a mere pittance. But should that expenditure be used to create something for non-profit making or to create something that will ultimately rake in huge sums of money? When it comes to OpenAI, creators of ChatGPT, and Elon Musk, owner of xAI and Grok, it would seem they've not seen eye-to-eye on this matter.

OpenAI started as a non-profit AI research organisation in December 2015, before launching a for-profit subsidiary (OpenAI Global) four years later. The company was co-chaired by Sam Altman and Elon Musk until 2018 when Musk resigned from the board of directors, to avoid a conflict of interest with Tesla, which uses AI for its autonomous driving systems.

Over the years, other staff left OpenAI to start up AI companies of their own, and OpenAI Global attracted the attention of Microsoft, which pumped billions of dollars into the subsidiary, securing a nearly 50% share of the company.

Earlier this year, however, Elon Musk sued OpenAI and Sam Altman for breach of contract, violating fiduciary duty, and unfair business practices—in short, because OpenAI had decided to target profits and commercial interests, over the company's original goal of pursuing AI for the good of mankind.

Fast forward to a few days ago and it would seem that all is not quite as simple as it sounds, because OpenAI has published redacted DMs and emails that show Musk wanted OpenAI to go for-profit in the summer of 2017, before then going on to "demand majority equity, absolute control, and to be CEO of the for-profit."

In one email supposedly from Musk, he wrote that "the Preferred A investment round (supermajority me) should have the right to appoint four (not three) seats. I would not expect to appoint them immediately, but, like I said I would unequivocally have initial control of the company, but this will change quickly."

While it's not an outright demand for the control of OpenAI, I think it's fair to say that the message doesn't read particularly well and the board rejected Musk's option. It tried to placate him, though, saying "We really want to work with you. We believe that if we join forces, our chance of success in the mission is the greatest. Our upside is the highest. There is no doubt about that. Our desire to work with you is so great that we are happy to give up on the equity, personal control, make ourselves easily firable — whatever it takes to work with you."

Not that this had any effect because Musk's response was unequivocal: "Guys, I’ve had enough. This is the final straw. Either go do something on your own or continue with OpenAI as a non-profit. I will no longer fund OpenAI until you have made a firm commitment to stay or I’m just being a fool who is essentially providing free funding for you to create a startup. Discussions are over."

AI, explained

OpenAI logo displayed on a phone screen and ChatGPT website displayed on a laptop screen are seen in this illustration photo taken in Krakow, Poland on December 5, 2022.

(Image credit: Jakub Porzycki/NurPhoto via Getty Images)

What is artificial general intelligence?: We dive into the lingo of AI and what the terms actually mean.

From the various messages being now made public, Musk was seemingly never hugely opposed to opening up a for-profit OpenAI offshoot or even necessarily for the whole company to go that way. The issue seems to be how it would all be organised and funded. Which does make his current lawsuit look maybe a bit spurious: why is there an issue with a for-profit OpenAI now?

Where things go now isn't clear, though I imagine that Elon Musk will have a few things to say on the matter. As far as I can tell, there's no mention of OpenAI's claims on his X account but the man posts a lot so there could be something buried away. The sensible thing to do would be to leave this all in the hands of legal beagles, but I guess OpenAI's post rather sidesteps that.

Time to get some more popcorn in, methinks.

Nick Evanson
Hardware Writer

Nick, gaming, and computers all first met in 1981, with the love affair starting on a Sinclair ZX81 in kit form and a book on ZX Basic. He ended up becoming a physics and IT teacher, but by the late 1990s decided it was time to cut his teeth writing for a long defunct UK tech site. He went on to do the same at Madonion, helping to write the help files for 3DMark and PCMark. After a short stint working at Beyond3D.com, Nick joined Futuremark (MadOnion rebranded) full-time, as editor-in-chief for its gaming and hardware section, YouGamers. After the site shutdown, he became an engineering and computing lecturer for many years, but missed the writing bug. Cue four years at TechSpot.com and over 100 long articles on anything and everything. He freely admits to being far too obsessed with GPUs and open world grindy RPGs, but who isn't these days? 

Read more
OpenAI logo displayed on a phone screen and ChatGPT website displayed on a laptop screen are seen in this illustration photo taken in Krakow, Poland on December 5, 2022.
A 'Musk-led consortium' of investors say they'll withdraw $97.4 billion bid to buy OpenAI—but only if it stays non-profit
Tesla and SpaceX CEO Elon Musk gestures as he speaks during the inaugural parade inside Capital One Arena, in Washington, DC, on January 20, 2025. (Photo by ANGELA WEISS / AFP) (Photo by ANGELA WEISS/AFP via Getty Images)
Elon Musk kicks off $97.4 billion effort to buy OpenAI by immediately starting social media beef with Sam Altman
SUQIAN, CHINA - JANUARY 27, 2025 - An illustration photo shows the logo of DeepSeek and ChatGPT in Suqian, Jiangsu province, China, January 27, 2025. (Photo credit should read CFOTO/Future Publishing via Getty Images)
The brass balls on these guys: OpenAI complains that DeepSeek has been using its data, you know, the copyrighted data it's been scraping from everywhere
OpenAI logo displayed on a phone screen and ChatGPT website displayed on a laptop screen are seen in this illustration photo taken in Krakow, Poland on December 5, 2022.
If you don't let us scrape copyrighted content, we will lose out to China says OpenAI as it tries to influence US government
SAN FRANCISCO, CALIFORNIA - NOVEMBER 06: OpenAI CEO Sam Altman speaks during the OpenAI DevDay event on November 06, 2023 in San Francisco, California. Altman delivered the keynote address at the first-ever Open AI DevDay conference.(Photo by Justin Sullivan/Getty Images)
In a mere decade 'everyone on Earth will be capable of accomplishing more than the most impactful person can today' says OpenAI boss Sam Altman
OpenAI logo displayed on a phone screen and ChatGPT website displayed on a laptop screen are seen in this illustration photo taken in Krakow, Poland on December 5, 2022.
ChatGPT faces legal complaint after a user inputted their own name and found it accused them of made-up crimes
Latest in AI
Otter AI Meeting Agent
As if your work meetings weren't already fun enough, now Otter has a new all-hearing AI agent that remembers everything anyone has said and can join in the discussion
Image for
'No real human would go four links deep into a maze of AI-generated nonsense': Cloudflare's AI Labyrinth uses decoy pages to trap web-crawling bots and feed them slop 'as a defensive weapon'
CHINA - 2025/02/11: In this photo illustration, a Roblox logo is seen displayed on the screen of a smartphone. (Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images)
'Humans still surpass machines': Roblox has been using a machine learning voice chat moderation system for a year, but in some cases you just can't beat real people
OpenAI logo displayed on a phone screen and ChatGPT website displayed on a laptop screen are seen in this illustration photo taken in Krakow, Poland on December 5, 2022.
ChatGPT faces legal complaint after a user inputted their own name and found it accused them of made-up crimes
Public Eye trailer still - dead-eyed police officer sitting for an interview
I'm creeped out by this trailer for a generative AI game about people using an AI-powered app to solve violent crimes in the year 2028 that somehow isn't a cautionary tale
Closeup of the new Copilot key coming to Windows 11 PC keyboards
Microsoft co-authored paper suggests the regular use of gen-AI can leave users with a 'diminished skill for independent problem-solving' and at least one AI model seems to agree
Latest in News
The heroes are attacked by monsters
Pillars of Eternity is getting turn-based combat to mark its 10th anniversary, and that means PC Gamer editors will soon be arguing about combat mechanics again
Image of Ronaldo from Fatal Fury: City of the Wolves trailer
It doesn't really make sense that soccer star Ronaldo is now a Fatal Fury character, but if you follow the money you can see how it happened
Junah beginning a battle in Metaphor: ReFantazio.
Today's RPG fans are 'very sensitive to feeling like they wasted time' when they die, says Metaphor: ReFantazio battle planner—but Atlus still made combat hard anyway
Image of Cersei Lanniser from Game of Thrones: Kingsroad Steam early access trailer
A new Game of Thrones RPG is coming to Steam today with a cast of 'familiar faces,' which is good because it's really the only way to tell it's a GoT game at all
The new Prime Asset featured in the upcoming update for the Outlast Trials.
The Outlast Trials puts its already paranoid players under surveillance for a time-limited story event
A Viera looking confused in Final Fantasy 14.
Old armor continues to fall victim to Final Fantasy 14's bizarre two-channel dye system, unless you're super into changing the colour of teeny-tiny eyelets: 'Why even bother at this point?'