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OpenAI Subpoenas Critics Amid Musk Lawsuit Over Restructuring

OpenAI Subpoenas Critics Amid Musk Lawsuit Over Restructuring
Ars Technica2

Background

OpenAI is facing a lawsuit from Elon Musk, who alleges that the company has strayed from its original nonprofit mission and is now focused on generating large profits. The lawsuit has intensified scrutiny of OpenAI’s recent corporate restructuring.

OpenAI’s Subpoenas

In response to criticism, OpenAI has issued subpoenas to several nonprofit watchdogs. The subpoenas were directed at the Midas Project, the San Francisco Foundation (SFF), and Encode. OpenAI’s chief strategy officer, Jason Kwon, characterized these groups as part of campaigns that support Musk’s opposition to OpenAI’s restructure.

Responses from Nonprofits

The Midas Project, a nonprofit that seeks to ensure AI benefits everyone, rejected claims of any connection to Musk. Its founder, Tyler Johnston, clarified that the organization was formed 19 months ago and has never received funding from Musk or his affiliates. Johnston also expressed frustration that the subpoena has affected the group’s ability to obtain insurance coverage.

San Francisco Foundation’s chief impact officer, Judith Bell, said the foundation’s subpoena followed its effort to petition California’s attorney general to block OpenAI’s restructuring. Encode’s general counsel, Nathan Calvin, received a subpoena after the organization sponsored a California safety regulation intended to improve monitoring of frontier AI risks.

Ruby‑Sachs, speaking to NBC News, emphasized that her organization is not funded by or aligned with Musk and has a history of campaigning against his interests.

Implications

The subpoenas have raised concerns among the targeted nonprofits that OpenAI may be using legal pressure to curb dissent. Johnston suggested that making an organization uninsurable could be a strategy to constrain its speech. The situation highlights a broader clash between OpenAI’s strategic direction and the watchdog community that seeks to keep AI development aligned with public benefit.

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Source: Ars Technica2

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