The Midas Project has filed a formal complaint with the IRS against OpenAI, alleging conflicts of interest undermine its nonprofit status.
The complaint centers on CEO Sam Altman’s simultaneous leadership roles, claiming this creates governance problems. It also scrutinizes financial connections among OpenAI board members, including Bret Taylor and Adam D’Angelo. Their ties to companies interacting with OpenAI raise questions about the nonprofit’s integrity.
OpenAI, founded as a nonprofit, reportedly explored transitioning to a for-profit structure late last year. While the organization publicly reaffirmed its commitment to its nonprofit mission in May, the complaint expresses concern.
The Midas Project warns that relaxing any potential profit caps could weaken OpenAI’s public interest safeguards, shifting focus towards financial gain at the expense of ethical AI development.
The complaint follows public conflict surrounding OpenAI’s direction. Co-founder Elon Musk sued the organization alleging a breach of its founding mission, after previously supporting a move towards a for-profit model. Musk also reportedly made a substantial acquisition bid which was rejected.