Elon Musk accuses OpenAI of being “built on a lie” amid new controversy

Tesla CEO Elon Musk has renewed his criticism of OpenAI, calling the artificial intelligence company “built on a lie” and accusing it of misusing its original nonprofit status. His comments come amid new allegations that OpenAI used intimidation tactics against advocates of AI regulation.

Musk responds to former OpenAI board member

Musk’s comments on X followed a post by Helen Toner, a former OpenAI board member, who said the company had used “dishonesty and intimidation tactics” in its policy work, despite some of its positive achievements.

When users on X asked if OpenAI should still be considered a nonprofit, Musk replied:

“They stole a charity and used it for their own financial gain.”

Allegations of intimidation emerge

The controversy deepened after Nathan Calvin, a lawyer at AI policy nonprofit Encode AI, alleged that OpenAI sent a sheriff’s deputy to his home to serve him with a subpoena. Calvin claimed the subpoena demanded private communications about California’s newly passed AI transparency law (SB 53).

Writing on X, Calvin said: “One Tuesday night, as my wife and I sat down for dinner, a sheriff’s deputy knocked on the door to serve me a subpoena from OpenAI.” He described the move as an attempt to intimidate critics of the company.

OpenAI has not commented on the specific allegation. However, the subpoena reportedly relates to its ongoing legal dispute with Musk, who sued the company earlier this year, accusing it of abandoning its original nonprofit mission. OpenAI countersued, claiming Musk was attempting to slow down its progress through legal pressure.

Nonprofit roots under scrutiny

Founded in 2015 as a nonprofit, OpenAI’s stated goal was to develop artificial general intelligence (AGI) that benefits all of humanity.

In 2019, OpenAI created a for-profit subsidiary to attract funding, later forming partnerships worth billions of dollars including a reported $100 billion investment from Nvidia and potential warrants for 160 million shares in AMD, according to several reports.

The company has since announced it would remain under nonprofit oversight, with its commercial arm converted into a public benefit corporation. Despite that, critics argue its growing profits and private partnerships contradict its founding promise.

Broader debate on AI ethics

The Musk-OpenAI dispute highlights a wider industry struggle between profit-driven AI development and public accountability. With AI systems becoming more powerful, whereas few experts warn that governance, transparency, and ethical oversight must keep pace.

OpenAI, Google, Microsoft, and Anthropic have all faced increasing scrutiny from regulators and policymakers over AI safety, bias, and data transparency.

As governments worldwide push for clearer AI laws, Musk continues to position himself as a vocal critic of what he calls “irresponsible AI expansion”