AIMPACT Update, April 28 (UTC+8): According to monitoring by Beating, when OpenAI transitioned from a purely nonprofit to a "capped-profit" structure in 2019, it established three safeguards: a profit cap, AGI-triggered termination of licensing, and exclusive binding with Microsoft. By the day the Musk case went to trial, all three had been rewritten or removed. This is precisely the core of Musk’s lawsuit: OpenAI systematically dismantled its original nonprofit commitments made to donors. Profit Cap: In 2019, investor returns were capped at 100 times their investment, with any excess going to the nonprofit. This cap was eliminated in May 2025 upon conversion to a PBC, replaced with ordinary shares and unlimited returns. Altman’s internal memo stated that the capped-profit model was reasonable when only one AGI company existed, but “no longer applicable” in a competitive environment. The previous $6.6 billion funding round was predicated on removing this cap. AGI Trigger: The 2019 agreement stipulated that Microsoft’s commercial license would automatically terminate upon the OpenAI board’s determination that AGI had been achieved. In October 2025, the PBC conversion agreement revised this: AGI determination was shifted to an independent panel of experts; Microsoft’s IP license was extended to 2032 and explicitly extended to post-AGI models; Microsoft was also granted permission to independently pursue AGI. The original “terminate upon achievement” became “continue after achievement.” Exclusivity and Revenue Sharing: Previously, Microsoft held exclusive licensing rights to OpenAI’s IP, with revenue sharing continuing until AGI was declared. On April 27, the revised agreement eliminated exclusivity; revenue sharing became a fixed payment through 2030, decoupled from OpenAI’s technological progress, and no longer triggered any commercial changes regardless of whether AGI was achieved. These three revisions were completed in May 2025, October 2025, and April 27, 2026, respectively—the final one announced on the very day jury selection began. Musk’s team will argue this was a deliberate dismantling of protective mechanisms; OpenAI will argue it was a necessary adjustment in a competitive landscape. (Source: BlockBeats)
OpenAI Removes All Three 2019 Non-Profit Safeguards Amid Musk Lawsuit
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Summary
OpenAI has removed all three 2019 nonprofit safeguards amid the Musk lawsuit, including the profit cap, AGI-triggered termination, and Microsoft licensing terms. The changes occurred in May 2025, October 2025, and April 27, 2026, with the final update coinciding with jury selection. The revisions now permit unlimited returns, extend Microsoft’s IP rights to AGI models until 2032, and eliminate commercial triggers. Musk’s legal team claims the changes violate CFT principles, while OpenAI states they respond to market pressures. The move raises questions under MiCA, as it impacts regulatory compliance and investor rights.
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