Former OpenAI Employees Speak Out Against Company’s Conversion to For-Profit

Background on OpenAI’s Proposed Conversion

OpenAI, a company founded in 2015 as a nonprofit, is planning to convert to a for-profit corporation. This move has been met with opposition from a group of former employees, who have filed a proposed amicus brief in support of Elon Musk’s lawsuit against OpenAI.

Former Employees’ Concerns

A group of 12 former OpenAI employees, including Steven Adler, Rosemary Campbell, Neil Chowdhury, and others, have expressed their concerns about the company’s proposed conversion. They argue that removing the nonprofit’s controlling role would "fundamentally violate" the organization’s mission.

History of OpenAI’s Structure

OpenAI was founded as a nonprofit in 2015 and converted to a "capped-profit" in 2019. The company has since been trying to restructure once more into a public benefit corporation (PBC).

Musk’s Lawsuit Against OpenAI

Elon Musk’s lawsuit against OpenAI accuses the company of abandoning its nonprofit mission, which aimed to ensure that its AI research benefits all humanity. Musk had sought a preliminary injunction to halt OpenAI’s conversion, but a federal judge denied the request, allowing the case to go to a jury trial in spring 2026.

Ex-OpenAI Employees’ Brief

The former employees’ brief argues that OpenAI’s present structure, with a nonprofit controlling a group of subsidiaries, is a "crucial part" of its overall strategy and "critical" to the organization’s mission. They claim that restructuring that removes the nonprofit’s controlling role would breach OpenAI’s mission and charter commitments, as well as the trust of employees, donors, and other stakeholders.

Concerns About Artificial General Intelligence

The brief also warns that a for-profit OpenAI might be incentivized to "cut corners" on safety work and develop powerful AI "concentrated among its shareholders." This would be a breach of the "merge and assist" clause in OpenAI’s current charter, which pledges that OpenAI will stop competing with and assist any "value-aligned, safety-conscious" project that achieves AGI before it does.

Growing Opposition to OpenAI’s Conversion

The ex-OpenAI employees join a growing cohort of organizations and individuals voicing opposition to OpenAI’s transition. A group of organizations, including nonprofits and labor groups, have petitioned California Attorney General Rob Bonta to stop OpenAI from becoming a for-profit.

Conclusion

The stakes are high for OpenAI, which needs to complete its for-profit conversion by the end of this year or next or it will risk relinquishing some of the capital it has raised in recent months.

FAQs

Q: What is the proposed conversion of OpenAI?
A: OpenAI is planning to convert from a nonprofit to a for-profit corporation.

Q: Who is opposing OpenAI’s conversion?
A: A group of 12 former OpenAI employees, along with other organizations and individuals, have expressed opposition to the conversion.

Q: What is the concern about OpenAI’s conversion?
A: The former employees and others believe that removing the nonprofit’s controlling role would "fundamentally violate" OpenAI’s mission and breach the trust of employees, donors, and other stakeholders.

Q: What is the significance of OpenAI’s structure?
A: The present structure, with a nonprofit controlling a group of subsidiaries, is a "crucial part" of OpenAI’s overall strategy and "critical" to the organization’s mission.

Q: What is artificial general intelligence (AGI)?
A: AGI refers to AI that can complete any task a human can.