Why is Elon Musk after OpenAI?

You know it’s peak 2025 when a tech nonprofit valued at $300 billion finds itself locked in a courtroom brawl, pivots corporate structure mid-flight, slashes its biggest partner’s paycheck, and somehow, still has time to train its chatbot to be less clingy. Welcome to the ongoing saga of OpenAI, a story loaded with corporate intrigue, idealism gone fuzzy, and yes, Elon Musk playing both plaintiff and platform disruptor. This isn’t just AI news; it’s a full-blown soap opera for financial professionals, with effects across risk management, capital planning, and investor confidence. So, who’s in control? Who’s cashing in? And what’s Musk after? Let’s break it all down.

Non-Profit or Just Non-Committal

Let’s start where the courtroom gavel landed most recently. Elon Musk’s lawsuit against OpenAI is not just surviving, it’s thriving. Despite OpenAI's surprise announcement on May 6, 2025, that it would retain its non-profit oversight, Musk’s legal team is still pushing full steam ahead toward the March 2026 trial. OpenAI's latest twist? CEO Sam Altman confirmed in a blog post that the company will remain under the control of its original non-profit arm, a backtrack from earlier restructuring plans that would’ve handed more control to its for-profit wing. Altman claims it wasn’t Musk’s barking that caused the U-turn, but rather conversations with civic leaders and the Attorneys General of California and Delaware.

Microsoft & Money Moves

Speaking of power shifts, OpenAI is making moves that could pinch Microsoft’s wallet. Currently sharing 20% of its revenue with its $13.75 billion backer, OpenAI told investors it plans to cut that share in half, to just 10%, by 2030. Scroll down for the eye-popping revenue projections, spoiler: Microsoft’s slice gets a little leaner.

 While Microsoft’s exact reaction is behind closed doors, let’s just say they aren’t popping champagne. See the chart below for how the money flows between OpenAI and Microsoft — it's more tangled than your earbuds used to be. The two are in “active negotiations” over equity stakes, profit-sharing, and how to keep the $500 billion joint AI infrastructure plan humming. OpenAI insists the partnership is strong and evolving. But when you start cutting someone’s revenue slice, things usually aren’t all that peachy.

The Bigger Mission or Just Big Business?

OpenAI’s move to stick with its non-profit roots may cool legal tempers in the short term, but it hasn’t solved the identity crisis. Back in 2015, OpenAI was launched to build AGI (Artificial General Intelligence) "for the benefit of all humanity.” Fast forward a decade, and it's valued at $300 billion, spends $9 billion a year, and still has no solid business model. Even Altman admitted, “We need much more capital than we ever imagined.” That’s why the for-profit arm is being converted into a Public Benefit Corporation (PBC), a structure that lets them still chase cash while claiming to do social good.

But critics, especially Musk, see it as lipstick on a capitalistic pig. According to him, the shift changes nothing; OpenAI is still funneling “charitable assets for the benefit of private persons, including Altman and Microsoft.” As if redefining its corporate structure wasn’t ambitious enough, OpenAI is also quietly laying the groundwork for its social media platform, a potential rival to Musk’s X, signaling an intent to expand beyond research and into full-scale consumer tech. One key tension: OpenAI’s flagship GPT-4 model, now discontinued, was locked behind a paywall, a central complaint in Musk’s lawsuit. To him, that’s proof the mission has gone mercenary.

Musk’s AI Power Play with xAI

While Musk battles OpenAI in court, he’s not sitting on the AI sidelines. His company, xAI, is going toe-to-toe with OpenAI’s ChatGPT empire. And now, he’s teamed up with Palantir and TWG Global to inject his AI tools, including Grok and the Colossus supercomputer, into the financial services industry. TWG will lead deployment, working with insurance firms and financial institutions to integrate xAI’s models. Palantir will provide its data muscle. The trio is betting that their collaborative effort will gain serious traction, especially with xAI’s Grok AI system expanding its footprint beyond Musk’s X (formerly Twitter).

This comes on the heels of another March announcement: xAI joining a mega consortium backed by Microsoft, Nvidia, SoftBank, and others to grow U.S. AI infrastructure. Yep, the same Microsoft OpenAI is now negotiating revenue cuts with. So, are xAI and OpenAI on the same page? Not unless that page is served in court filings.

Battle of the Bots

Here’s where it gets spicy. OpenAI’s ChatGPT remains the household name, boasting 500 million weekly users. But with xAI's Grok being integrated into the financial world and other Musk-driven platforms like Neuralink, Tesla’s Dojo, and the standalone Grok app offering subscriptions, we’re seeing a philosophical and commercial clash. While Altman’s team is working on making ChatGPT less “sycophantic” (a real issue they rolled back recently), Musk’s Grok model touts its rebelliousness and sarcasm. Think Siri with a chip on its shoulder. In essence, OpenAI aims to be the polite genius at your dinner table; xAI wants to be the guy spilling conspiracy theories at the bar, both may sound smart, but which one gets invited back?

Finance Professionals, Pay Attention

Between Altman’s restructuring retreat and Musk’s aggressive expansion into financial services, the AI sector is no longer just a “tech story.” These developments are shaking up how AI will be used in risk modeling, wealth management, auditing, and even regulatory compliance. Accountants and finance professionals should watch for:

• AI-driven automation in advisory and client reporting (via Grok or ChatGPT)
• Shifting power in AI investments, Microsoft, SoftBank, and even Oracle have skin in this game
• Ethical and compliance frameworks, especially with public benefit structures, are blurring corporate purpose

And let’s not forget with the financial pressure rising, OpenAI may need to commercialize faster. Subscription tiers for ChatGPT are multiplying, Free, Plus, Pro, Team, Enterprise, Education, you name it. Is it still serving the public good, or just the paying public?

Final Verdict

The OpenAI–xAI tail is more than just corporate drama. It’s a mirror reflecting deeper tensions between mission-driven innovation and investor-fueled expansion. Sam Altman wants to "build a brain for the world," a lofty ambition that now comes with a multi-billion-dollar price tag and a complicated legal backdrop. Elon Musk, on the other hand, wants to sue that brain, all while building his own through xAI and its growing partnerships. Meanwhile, Microsoft wants to get paid, and perhaps paid more fairly, as it juggles its roles as investor, infrastructure provider, and now, revenue-sharing negotiator. Whether OpenAI’s future stays grounded in altruism or floats toward capital gains, one thing’s certain: in this AI arms race, no one’s playing checkers. The trial may be set for 2026, but the real drama? That’s unfolding in real time, and the next move could come from a courtroom, a boardroom, or even your favorite chatbot. Stay tuned. Stay sharp in accounting, tax, and finance—subscribe to MYCPE ONE Insights and get the latest updates and expert news delivered right to your inbox!