Mint explainer: How the Musk vs Altman case could reshape OpenAI’s future

The lawsuit, filed by Musk against OpenAI and its chief executive, Sam Altman, also a billionaire, seeks damages of around $150 billion and challenges the company’s shift from a non-profit research lab to a commercial AI powerhouse.

The case comes at a time when OpenAI is updating its guiding principles, reworking key partnerships, and expanding its footprint across cloud platforms. These developments raise a broader question about control, governance and the economics of building advanced AI.

Mint explains how this case could change OpenAI.

Founded in 2015 as a non-profit, OpenAI was intended to develop AI for the benefit of humanity and share its advances openly. The lawsuit alleges that OpenAI’s leadership moved away from that model by creating a for-profit structure, restricting access to its technology, and prioritizing commercial partnerships. Musk is seeking damages of around $150 billion, according to reports, along with structural changes to the organization.

OpenAI has rejected these claims. It maintains that the shift towards a capped-profit model and commercial partnerships was necessary to fund increasingly expensive AI development. It has also pointed to Musk’s own involvement in a competing AI venture, xAI, as a factor in the dispute.

The fundamental change came in 2019, when OpenAI created a new “capped-profit” structure. A non-profit parent retains control, but a for-profit entity was created as a subsidiary. Later, in 2025, the subsidiary was converted into a public benefit corporation that is 26% owned by the non-profit. It is the for-profit entity that has raised external capital. This revised structure was meant to balance OpenAI’s original mission with the need for large-scale funding.

It was in 2019 that Microsoft first invested in OpenAI, starting with a $1 billion investment and rising to about $13 billion by 2023. With this partnership, OpenAI had access to a vast computing infrastructure. More external investors, including Nvidia, SoftBank, and Amazon, have now joined Microsoft, and together they hold significant economic interests while OpenAI increasingly operates like a commercial technology platform.

At the same time, OpenAI has reworked its partnership with Microsoft. The revised agreement dilutes the exclusivity arrangement it had with Microsoft, allowing OpenAI’s models to be offered across multiple cloud platforms. OpenAI has since expanded its engagement with other providers, including Amazon Web Services, to increase computing capacity and reach a wider set of enterprise customers.

These changes accompany a surge in funding. The company has raised more than $120 billion in recent rounds, with backing from investors including Amazon, Nvidia and SoftBank. Its valuation has jumped to about $850 billion, placing it among the most valuable private technology firms globally. Its annualized revenue is estimated at $25 billion, according to The Information.

There is also the challenge of increased competition from the likes of Anthropic and others. Developing advanced AI requires heavy investment in computing, data and talent, which a non-profit model might not be able to fully support.

Yet another point of contention is decision-making. As AI systems become more capable, decisions about access, deployment and safety have wider implications. The case raises the question of who has the authority to make those decisions.

Finally, there is the issue of precedent. OpenAI is among the most closely watched AI companies, and the case can shape how other companies and groups view the further development and deployment of AI.

A moderate outcome could require adjustments to governance, like a more formal separation between the non-profit and for-profit arms, or greater transparency in decision-making.

An adverse ruling could lead to significant changes in the company’s structure or leadership. This could affect how OpenAI runs its operations, raises capital, partners with other firms, and distributes its technology. The billions of dollars raised and the stakes held by investors could also come under scrutiny.

The Musk vs Altman case is much more than a dispute between two prominent figures in technology. At stake is not just OpenAI’s future, but also how the next generation of AI firms is built and governed.