In August 2023, the open source community rallied to create OpenTofu, an alternative to Terraform, after HashiCorp, now owned by IBM, adopted a restrictive Business Source License for Terraform. Ohad Maislish, co-founder and CEO of env0, explained on The New Stack Makers how this move sparked the initiative. A few hours after HashiCorp's license change, Maislish secured the domain opentf.org and began developing the new project, eventually named OpenTofu, which was donated to The Linux Foundation to ensure its license couldn't be altered.