Earlier this week, Elon Musk reignited his criticism of OpenAI's corporate structure after a post highlighted the company's soaring valuation and deep partnerships with tech giants like Nvidia Corp. (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD).
Musk Calls Out OpenAI's ‘Nonprofit' Label
On X, capital markets commentator The Kobeissi Letter questioned how OpenAI can still claim nonprofit status given its multibillion-dollar commercial ventures.
The post listed OpenAI's recent milestones: $100 billion investment from Nvidia, up to 10% ownership in AMD, $500 billion Stargate investment and $500 billion valuation.
"How is OpenAI still owned by a ‘nonprofit' parent company?" the post asked, to which Musk replied, "Good question."
His response follows months of tension between Tesla Inc. and xAI CEO and the ChatGPT-maker, which he co-founded in 2015 as a nonprofit before parting ways in 2018 over some disagreements.
OpenAI's Shift From Idealism To Profit Powerhouse
OpenAI has evolved far beyond its nonprofit origins. The company is now valued at roughly $500 billion after employees sold about $6.6 billion in shares to investors, including SoftBank Group (OTC:SFTBF) (OTC:SFTBY), Thrive Capital and Abu Dhabi's MGX.
The growth comes amid major deals with Nvidia — which pledged up to $100 billion for AI infrastructure — and AMD, which granted OpenAI warrants for up to 160 million shares.
OpenAI is also reportedly in talks with Microsoft Corp. (NASDAQ:MSFT) to restructure as a for-profit entity. Its current parent, OpenAI Inc., remains a nonprofit that controls the company's commercial arm.
Musk's Longstanding Feud With OpenAI
Musk has repeatedly accused OpenAI of abandoning its founding mission to advance AI "for humanity." Earlier this year, he and his firm xAI even made a $97 billion bid to acquire OpenAI's nonprofit parent — an offer the board swiftly rejected.
Benzinga’s Edge Stock Rankings place Nvidia's Growth in the 97th percentile and Quality in the 93rd, highlighting its robust standing against competitors such as AMD.
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