• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Midas Project Accuses OpenAI of Violations Threatening Nonprofit Status

user avatar

by Giorgi Kostiuk

3 hours ago


The nonprofit Midas Project has filed a complaint against OpenAI, accusing it of potential tax law violations that may threaten its nonprofit status.

Allegations of Conflicts of Interest

Midas Project claims that OpenAI's board of directors has severe financial conflicts of interest. Specifically, CEO Sam Altman serves a dual role as the head of OpenAI's for-profit operations and a board member of its nonprofit, which the complainants argue may lead to personal benefits for him at the nonprofit’s expense. The complaint states, 'CEO Sam Altman may receive equity in the new profit entity, but either way, his investments in partner companies potentially create conflicts worth hundreds of millions.'

Debates on Profit vs. Nonprofit Status

OpenAI was founded in 2015 as a nonprofit organization to ensure that advanced AI technology benefits humanity, not shareholders. In recent months, the company considered transitioning to a for-profit structure but reaffirmed its commitment to nonprofit status in May. It has been suggested that some board members have financial ties to firms that benefit from OpenAI’s operations.

Connection to Elon Musk

Elon Musk, one of the founders of OpenAI, advocated for the company to become for-profit in 2017 but has since filed two lawsuits against OpenAI, claiming that the company has violated the terms of their original contract. In February 2024, a Musk-led investor group proposed a $97.4 billion bid for OpenAI, which Altman rejected.

The situation surrounding OpenAI and the allegations from Midas Project raises important questions about conflicts of interest and the organization's objectives. The IRS inquiry may become critical in determining OpenAI's future status.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Florida Investigates Robinhood: Allegations of Consumer Deception and High Cryptocurrency Fees

chest

Florida accuses Robinhood of misleading consumers about low cryptocurrency prices and payment-for-order-flow practices.

user avatarGiorgi Kostiuk

Florida Attorney General Launches Investigation into Robinhood's Crypto Operations

chest

Florida's Attorney General's office has initiated an investigation into Robinhood's cryptocurrency business over allegations of misleading marketing.

user avatarGiorgi Kostiuk

Grok Tesla Integration: How AI Revolutionizes Tesla Cars

chest

The future of Tesla cars: AI integration of Grok promises to transform driving.

user avatarGiorgi Kostiuk

Tornado Cash Founder Challenges Late Witness Testimony in Court

chest

Tornado Cash founder Roman Storm challenges late witness testimony, which may lead to delays in his ongoing trial.

user avatarGiorgi Kostiuk

XRP Rises 6% Following Truth Social ETF Announcement

chest

XRP has reached $2.57 after being included in an ETF linked to Donald Trump, drawing interest from investors and analysts.

user avatarGiorgi Kostiuk

Zhipu Plans $300 Million IPO in Hong Kong

chest

Zhipu, an AI startup, is considering an IPO in Hong Kong, which may impact the market and funding access.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.