Nonprofit group joins Elon Musk’s effort to block OpenAI’s for-profit transition

Encode supports Musk’s lawsuit against OpenAI's for-profit move.

: Encode backs Elon Musk's legal action against OpenAI’s conversion to a for-profit structure, arguing it undermines AI's public safety. The hybrid entity relinquishing nonprofit control raises safety concerns. Meta also opposes the shift, warning of significant consequences for the tech industry.

Encode, co-sponsor of California’s SB 1047, has joined Elon Musk in opposing OpenAI’s transition to a for-profit by filing a proposed amicus brief. They argue this change undermines commitments to develop technology safely and beneficially for the public, instead prioritizing returns for investors.

The proposed shift to a Delaware Public Benefit Corporation has also drawn opposition from Meta, claiming it could greatly impact Silicon Valley. Encode argues OpenAI’s for-profit motives clash with its original philanthropic goals and could diminish accountability to safety as established under its nonprofit status.

There is concern over OpenAI's obligations to public benefit and safety being replaced by a need to yield to pecuniary interests. The nonprofit and its board potentially losing control in favor of a profit-focused agenda is highlighted, raising alarm among stakeholders, including former employees like Miles Brundage.