State officials say Musk failed to show public benefit, raising concerns over personal motives
California’s attorney general has officially declined to join Elon Musk’s lawsuit against OpenAI, stating that the tech billionaire failed to demonstrate how the lawsuit serves the state’s public interest. The decision, made public on Tuesday, marks a significant development in the ongoing dispute between Musk and OpenAI co-founder Sam Altman.
A Growing Feud Over AI’s Future
Elon Musk, once a co-founder of OpenAI, has been locked in a feud with Altman, the company’s current CEO. Musk’s lawsuit targets OpenAI’s planned transition from a nonprofit-led structure to one more appealing to investors, arguing that such a move could compromise the company’s original mission of benefiting humanity.
OpenAI, on the other hand, insists that its restructuring is necessary to secure a $40 billion investment round and sustain its growth. The company claims that the nonprofit arm will still retain valuable equity to support its mission over time.
Musk’s Attempt to Involve the State Fails
In a letter dated Monday, California’s attorney general stated that Musk’s lawsuit appears to be self-serving. The office expressed concern that Musk might be using OpenAI’s charitable assets for personal gain, especially in light of his previous unsolicited $97 billion offer to take control of the company.
The attorney general’s office concluded that Musk had not sufficiently proven how the lawsuit would benefit California’s public. As such, it will not intervene in the case, though it still holds authority over the nonprofit’s restructuring due to OpenAI’s California base.
Musk’s Lawyers Respond
Musk’s legal team quickly responded, arguing that the attorney general misunderstood the situation. They clarified that Musk has no intention of acquiring OpenAI if the nonprofit structure remains intact. The response also emphasized that various philanthropic leaders and former OpenAI employees support halting the transition.
OpenAI Stands Firm
OpenAI has remained firm in its stance. The company maintains that removing nonprofit control is essential to attract major investors and ensure the company’s long-term viability. Despite the legal dispute, OpenAI argues that the nonprofit will continue to benefit from the company’s success.
Trial Ahead in 2025
The case is expected to go to jury trial next spring. OpenAI and Altman have denied all allegations from Musk, who left the company before its rise to global prominence. In 2023, Musk launched his own AI venture, xAI, sparking speculation that his lawsuit may also serve competitive interests.
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