OpenAI Subpoenas Critics Amid Musk Lawsuit Over Restructuring
Key Points
- OpenAI issued subpoenas to the Midas Project, San Francisco Foundation, and Encode.
- Elon Musk sued OpenAI, claiming the company abandoned its nonprofit mission.
- Midas Project founder Tyler Johnston denied any funding or coordination with Musk.
- The subpoenas have reportedly impacted the nonprofits' ability to secure insurance.
- OpenAI officials describe the nonprofits as part of campaigns opposing the restructuring.
OpenAI has issued subpoenas to several nonprofit groups that have criticized its recent restructuring, including the Midas Project, the San Francisco Foundation, and Encode. The move follows a lawsuit filed by Elon Musk accusing OpenAI of abandoning its nonprofit mission in pursuit of profit. Representatives from the targeted organizations deny any funding or coordination with Musk and claim the subpoenas aim to silence dissent. OpenAI officials assert that the groups are part of campaigns opposing the company's restructuring.
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.