California Attorney General Declines to Back Elon Musk's Lawsuit Against OpenAI

SAN FRANCISCO: In a significant development in the ongoing feud between tech mogul Elon Musk and his former partner Sam Altman, the California attorney general's office has opted not to join Musk's lawsuit against OpenAI. The attorney general's office made this announcement public on Tuesday, citing concerns that Musk's legal action does not align with the public interest of the state.
Elon Musk, who co-founded OpenAI in 2015, is embroiled in a dispute with Altman, the current CEO and a fellow co-founder of the organization. The source of contention lies in OpenAI's recent proposal to transition away from its nonprofit status, which Musk argues could jeopardize the organization's original mission. This mission was to advance artificial intelligence in a manner that benefits humanity, rather than prioritizing corporate profits.
OpenAI is looking to restructure its governance by dissolving its current nonprofit board in exchange for a substantial equity stake. Musk's lawsuit raises alarms about this potential shift, arguing that it could lead to the misuse of the nonprofit's assets to serve private interests rather than the greater good. Alongside this, Musk has requested that the state of California lend its support to his lawsuit against OpenAI.
In a letter dated Monday, the attorney general's office explained that Musk had failed to convincingly demonstrate how joining the lawsuit would serve the public interest. They asserted that his motivations may revolve around personal gain rather than the collective welfare. This situation is compounded by a previous unsolicited bid made by a Musk-led consortium earlier this year, which offered a staggering $97 billion for control of OpenAI.
As OpenAI navigates this complex situation, it is also facing pressure from various entities, including Meta and several philanthropic leaders. These groups have urged the California attorney general to oppose OpenAI's plans to transition away from its nonprofit model. This opposition underscores the broader concern regarding the implications of such a shift for the future of artificial intelligence governance.
OpenAI has argued that in order to raise the necessary funds from investors, it must complete its transition by the end of the year. The organization is targeting a substantial $40 billion fundraising round, which they believe will allow them to secure the resources needed to fulfill their mission. OpenAI contends that even as it adjusts its structure, the nonprofit will maintain a valuable stake in the organization, which will contribute to its ongoing philanthropic goals.
The history between Musk and Altman is marked by collaboration and subsequent divergence. Although they co-founded OpenAI together, Musk departed from the organization before it gained significant recognition as a leader in advanced AI technologies. The tension came to a head last year when Musk filed a lawsuit against OpenAI and Altman, accusing them of deviating from the organization's foundational purpose.
In response to Musk's claims, OpenAI and Altman have staunchly denied any wrongdoing or deviation from their mission. A jury trial is anticipated to commence in the spring of next year, where the legal battles between the two tech titans are expected to unfold further.
Adding to the intrigue of this rivalry, Musk has also ventured into the realm of artificial intelligence with the establishment of his own AI company, xAI, in 2023. Altman has alleged that Musk's actions are motivated by a desire to undermine a competitor in the AI space, raising further questions about the future dynamics of the technology industry.