The California Attorney General’s office has decided not to join Elon Musk’s lawsuit against OpenAI, citing that the action does not serve the public interest. This decision was revealed in a letter made public on Tuesday.
Musk, a co-founder of OpenAI, is locked in a dispute with current CEO Sam Altman over the future direction of the company. At the heart of the disagreement is OpenAI’s plan to remove its nonprofit board from controlling the organization in exchange for valuable equity shares. Musk argues that this move would jeopardize the nonprofit’s mission and has sought the state’s involvement in the legal action.
In a letter sent Monday, the Attorney General’s office stated that Musk had not demonstrated how his lawsuit would benefit the public. The letter also suggested that Musk appeared to be using the situation to advance his own interests, particularly in light of a $97 billion offer from a Musk-led group to take control of OpenAI in February.
In response, Musk’s attorney sent a letter on Tuesday, asserting that the state had misunderstood Musk’s position. Musk, according to his lawyer, does not want to acquire OpenAI if the nonprofit structure remains in place. The letter also mentioned support from various philanthropic groups and former OpenAI employees who share Musk’s concerns over the planned transition.
While the Attorney General’s office has chosen not to intervene directly in the lawsuit, it continues to play a role in the ongoing situation. As OpenAI is based in California, the state must approve the company’s proposed transition away from its nonprofit model.
OpenAI argues that the nonprofit board’s removal is necessary to raise funds from investors. The company is aiming to complete its transition by the end of the year to secure a $40 billion fundraising round. Despite the changes, OpenAI claims the nonprofit will retain a valuable stake in the company, ensuring resources to support its mission.
Musk and Altman co-founded OpenAI in 2015, but Musk left before the company became a major player in AI technology. Musk, who also leads Tesla, previously sued OpenAI and Altman, accusing the organization of abandoning its mission to develop AI for the benefit of humanity rather than for corporate gain. OpenAI and Altman have denied these allegations. A jury trial is scheduled for spring next year.
Musk also launched his own AI company, xAI, in 2023. Altman has suggested that Musk is trying to undermine a competitor.
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