The Midas Project Files Complaint Against OpenAI Over Potential Tax Violations and Conflicts of Interest

The Midas Project’s complaint highlights several financial conflicts within OpenAI’s leadership. A major point of contention is the dual role of Sam Altman, CEO of OpenAI, who also sits on the board of the organization’s nonprofit arm. The complaint argues that this structure creates a scenario where Altman could personally benefit at the expense of the nonprofit’s mission, especially as OpenAI transitions toward a more profit-driven model.

In particular, the Midas Project suggests that Altman’s potential equity stake in a restructured OpenAI entity—estimated to be worth billions, given the company’s $300 billion valuation—could generate conflicts of interest. It further claims that Altman’s investments in companies that partner with OpenAI could result in financial windfalls potentially worth hundreds of millions of dollars.

The complaint doesn’t stop at Altman; it also implicates other members of OpenAI’s board for similar conflicts of interest. Notably, Bret Taylor, the chairman of OpenAI, is accused of a conflict of interest due to his co-founding of Sierra AI, a company that resells OpenAI’s models. Meanwhile, board member Adam D’Angelo, CEO of Quora, faces scrutiny for his company’s business relationship with OpenAI, while Adebayo Ogunlesi’s firm, Global Infrastructure Partners, stands to profit from AI infrastructure demand by owning data centers that support AI operations.

The Midas Project concludes that these financial entanglements could undermine OpenAI’s original mission, which was founded to ensure the benefits of advanced artificial intelligence are shared by humanity, not just private shareholders.

A Nonprofit in Transition: Profit or Nonprofit?
OpenAI’s nonprofit status has been a point of contention for years. Founded in 2015 by Elon Musk, Sam Altman, and other tech leaders, the organization set out to develop artificial intelligence in a way that benefits all of humanity. However, the company’s trajectory shifted when it explored the idea of transitioning to a for-profit structure.

In November 2024, OpenAI reportedly engaged in talks with U.S. regulators to restructure as a for-profit entity, but these plans were shelved by May 2025. Despite reaffirming its commitment to nonprofit status, OpenAI has not ruled out future changes to its organizational structure.

Elon Musk, one of OpenAI’s original founders, has been vocal about his dissatisfaction with the company’s shift away from its nonprofit origins. In 2017, Musk supported OpenAI’s potential transformation into a for-profit entity, but he later became one of its most vocal critics. In 2024, Musk filed two lawsuits against OpenAI, accusing the company of breaching its original nonprofit mission and seeking profit at the expense of public good.

Musk’s frustration reached a peak in February 2025 when a group of investors led by him made a $97.4 billion bid to acquire OpenAI. This offer was rejected by Sam Altman and the OpenAI board, leading to further tensions between Musk and the company.

The Midas Project’s Call for Investigation
As the debate over OpenAI’s nonprofit status intensifies, the Midas Project’s complaint emphasizes the potential risks of weakening the protections that were meant to ensure AI technologies benefit everyone, not just the organizations developing them. The watchdog group has called on the IRS to conduct a thorough investigation to safeguard OpenAI’s duty to the public, especially as AI technologies continue to advance at an exponential pace.

The unfolding situation signals a deeper question for the AI industry: Can a company be both a nonprofit organization and a major player in a trillion-dollar industry, or is the pressure to profit simply too great?

OpenAI stands at a crossroads, with its original mission to benefit humanity being increasingly challenged by the lure of massive financial returns. The Midas Project’s complaint shines a spotlight on the growing tensions between profit and public good in the AI sector. With financial conflicts at the highest levels of leadership, OpenAI’s future direction remains uncertain. Will it continue as a nonprofit or transition into a fully for-profit entity? And what does this mean for the future of AI development? Only time will tell.