Geoffrey Hinton Joins Elon Musk in Opposing OpenAI's Profit-Driven Shift

A heated debate over the future of artificial intelligence has intensified, as Geoffrey Hinton—known globally as the “Godfather of AI”—has aligned himself with Elon Musk to challenge OpenAI’s controversial transition from a nonprofit to a for-profit structure. Their concern: the existential risks posed by artificial general intelligence (AGI) when driven by profit incentives rather than safety and ethical stewardship.

OpenAI, once founded as a nonprofit with a core mission to ensure AGI benefits all of humanity, has taken a sharp turn toward corporate restructuring. This pivot, which includes plans to convert its for-profit arm into a public-benefit corporation, has triggered backlash from influential figures in the AI community. In particular, Hinton—who recently won the 2024 Nobel Prize in Physics—has sounded the alarm in an open letter, warning that the move could undermine global safety.

In his letter addressed to the Attorneys General of California and Delaware, Hinton calls for intervention to stop OpenAI’s reorganization. He highlights that prioritizing profits over precautions risks compromising the ethical path forward for AGI, a technology he and others describe as “the most important and potentially dangerous” of our time.

Elon Musk, a co-founder of OpenAI who has since distanced himself from the organization, publicly endorsed Hinton’s concerns. Musk shared Hinton’s Nobel credentials via a Google screenshot on X (formerly Twitter), emphasizing the credibility and gravity of Hinton’s warning. Musk has long voiced concern over AI’s trajectory, accusing OpenAI of abandoning its founding principles and warning that truth-seeking AI must not be compromised by commercial pressures.

Backing Hinton’s letter are over 30 AI researchers and ex-OpenAI staff, along with Encode, an AI watchdog group. They collectively argue that OpenAI’s move signals a broader industry trend: sidelining safety in favor of speed, scalability, and massive financial injections. Case in point, OpenAI’s recent $40 billion investment deal with SoftBank from Japan has raised eyebrows, even as the company insists that transitioning into a public-benefit corporation will preserve its ethical mission.

Despite OpenAI’s assurances, Hinton warns of a 10–20% probability that AGI could exceed human control within decades. He sees this as an urgent red flag. Critics argue that once profit becomes the primary driver, the systemic checks and balances—so vital for AGI development—begin to erode. This hybrid model, similar to those adopted by competitors like Anthropic and Musk’s own xAI, might look principled on paper but lacks rigorous, enforceable guardrails in practice.

The underlying fear is clear: when corporate profit intersects with world-altering technology, the outcomes could quickly slip out of human hands.

What Undercode Say:

The current standoff between Musk, Hinton, and OpenAI is emblematic of a deeper fracture in the AI research community—a rift between those who see AGI as a controlled public utility and those who treat it as a commercial frontier.

Undercode has long warned about the unchecked acceleration in the AI arms race. This battle isn’t merely about OpenAI’s corporate paperwork—it’s a microcosm of the global debate around AI governance. When Geoffrey Hinton, arguably one of the most respected minds in the field, publicly warns of a 20% chance that AGI might surpass human control, it shouldn’t be treated as an exaggeration. It’s a data point grounded in decades of research and intimate knowledge of AI’s inner mechanisms.

The alliance between Musk and Hinton is telling. While Musk has often been polarizing, he consistently returns to a single premise: AI must be developed transparently, ethically, and under global scrutiny. His criticism of OpenAI’s “betrayal” of its nonprofit roots is not unfounded—especially as the company now seeks tens of billions in investment capital. These pressures inevitably shift the company’s priorities.

SoftBank’s $40 billion injection into OpenAI isn’t just about funding—it’s leverage. And with leverage comes influence, often exerted behind closed doors. Even if OpenAI becomes a public-benefit corporation, there’s little legal obligation that prevents prioritizing stakeholders’ interests over public safety. Public-benefit corporations still generate profit, and unless robust, independent oversight exists, the “benefit” aspect can quickly become a PR tool rather than a structural safeguard.

Also important is the symbolism of Hinton’s move. Nobel laureates don’t often step into regulatory advocacy, especially in tech. That he chose to do so—formally and publicly—signals the level of urgency he feels. His warning isn’t just for lawyers or governments. It’s for society at large.

AGI isn’t about chatbots. It’s about the potential to create entities that can outthink, outmaneuver, and eventually out-control human institutions. As companies rush to claim dominance in this space, the regulatory frameworks must not only catch up—they must lead.

Undercode believes we’re witnessing a defining moment in AI history. The tide may shift toward transparency, but only if the public pressure mounts. Hinton’s voice adds weight. Musk’s platform amplifies it. Whether the Attorneys General act is another story—but the world is watching.

Fact Checker Results:

Geoffrey Hinton did send an open letter regarding OpenAI’s restructuring, calling for intervention based on ethical and safety concerns.
OpenAI confirmed plans to restructure and attract large-scale investments, notably $40 billion from SoftBank.
Elon Musk has publicly criticized OpenAI’s for-profit direction and supported Hinton’s concerns via X.

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