California Rejects Elon Musk’s Request to Join Lawsuit Against OpenAI

California’s attorney general has declined to join Elon Musk’s lawsuit against OpenAI, stating the legal action does not appear to serve the public interest. Musk, who co-founded OpenAI in 2015 but later left, is suing the company and CEO Sam Altman over a proposed structural change that would shift control from its nonprofit board to for-profit investors.

Musk alleges that OpenAI’s transition plan undermines its original mission to develop artificial intelligence for the benefit of humanity. He urged California’s AG to join the suit, citing concerns about misuse of charitable assets. However, in a letter made public Tuesday, the AG’s office said Musk hadn’t demonstrated how his lawsuit benefits the public and suggested his $97 billion bid for OpenAI, made through a Musk-led group in February, reflected personal interests.

In a rebuttal, Musk’s lawyer claimed the AG misunderstood the intent behind the bid, stating Musk is not interested in acquiring OpenAI unless its nonprofit mission changes. The lawyer emphasized broad public concern, noting support from labor and charitable groups and former OpenAI employees.

Despite rejecting the lawsuit, the AG’s office remains involved due to its authority over California-based nonprofits. Any change to OpenAI’s nonprofit status must receive state approval.

OpenAI argues that restructuring is essential to secure a $40 billion funding round and continue its AI development. The company says the nonprofit will retain equity, allowing it to fund its mission long-term.

Tensions between Musk and Altman continue to rise as both lead competing AI ventures—Musk with xAI, launched in 2023. The case is scheduled for a jury trial next spring, with OpenAI and Altman denying any wrongdoing and accusing Musk of attempting to hinder a rival.