Musk’s Lawyer Says He’ll Keep Fighting OpenAI Restructuring

Elon Musk’s lawyer says he’s not backing down. He will keep challenging OpenAI in court. He also criticised the attorneys general in California and Delaware. He claims that they let OpenAI restructure as a profit company.

The case shows the growing tension between Musk and OpenAI. OpenAI is moving towards becoming a public-benefit corporation. But Elon Musk disagrees.

On Wednesday, Mark Toberoff, Musk’s lead lawyer, directly called out the state officials. He said, “OpenAI can’t cover up illegal actions with a rushed agreement.”

This came after OpenAI announced a major change the day before. The company is giving 27% of its shares to longtime supporter, Microsoft. It is trying to make sure the nonprofit side still controls the "profit" business. CEO Sam Altman says this change is part of his long-term plan.

Musk and Altman used to work together. But their relationship has turned sour. Their legal fight over OpenAI’s future has been going on since last year.

Musk started his own AI company, xAI, in 2023. xAI is now one of OpenAI’s main rivals. This year, OpenAI rejected Musk’s $97.4 billion offer to buy its nonprofit assets. This shows how far apart the two sides are.

Altman says Musk is trying to slow OpenAI down through the courts. Musk argues that OpenAI is founded on charitable principles. He claims Altman is trying to break this founding element. U.S. District Judge Yvonne Gonzalez Rogers has set the trial for the end of March next year.

OpenAI called Musk’s claims “frivolous.” The company said the lawsuit is just another example of Musk’s harassment.

There is no comment from Delaware’s Attorney General Kathy Jennings. Also, there is no comment from the office of California’s Attorney General Rob Bonta. Neither responds to the request for comments. 

For now, OpenAI is free to restructure. The state officials have not blocked its plan. Bonta noted that the change “won’t affect other cases.” This means that Musk’s lawsuit can still go forward.

OpenAI restructuring is a last minute plan. This is the reason why some think the case need to go to trial. It seems OpenAI is trying to get ahead of the court. Get it done before the court sits.

However, Bonta's comment gives Musk hope. Whether OpenAI restructure or not, the case will still proceed.