On October 30, according to Bloomberg, after OpenAI announced the completion of its reorganization,Lawyers for Elon Musk blasted the attorneys general of California and Delaware for not preventing OpenAI from reorganizing into a for-profit company and vowed to continue legal proceedings against OpenAI on Musk’s behalf to undo OpenAI’s reorganization.
Musk and Ultraman
Marc Toberoff, Musk's lead attorney in the OpenAI lawsuit, said in a statement on Wednesday: "Attorneys general cannot whitewash OpenAI's illegal conduct with a hastily negotiated agreement."
OpenAI announced on Tuesday that the company has completed its transformation and reorganization and awarded 27% of its shares to its long-term backer Microsoft.And ensure that OpenAI’s nonprofit arm remains in control of its for-profit business. OpenAI will now become a public benefit corporation, fulfilling a long-held goal of CEO Sam Altman.
While state officials did not dispute OpenAI's restructuring plan, California Attorney General Rob Bonta said in a memorandum of understanding that,OpenAI's transition "will have no impact on any other cases" and will allow Musk's lawsuit to proceed.
“OpenAI’s attempt to circumvent courts and juries through last-minute restructuring underscores the need for this case to go to trial,” Toberoff said. “The California Attorney General has good reasons for retaining Musk’s litigation rights, and we intend to defend these rights.”
Musk and Altman were once business partners and now are bitter enemies.The two sides have been battling in court over the future of OpenAI since last year. Altman denounced Musk's lawsuit against OpenAI's restructuring, saying it was using the legal system as a tool to slow down competitors. U.S. District Judge Yvonne Gonzalez Rogers has scheduled a trial on the lawsuit for the end of March next year. In this case, Musk accused Altman of departing from OpenAI’s founding principles as a charity.
An OpenAI spokesperson said in a statement: "These unsubstantiated accusations are just another example of Musk's continued harassment. It continues to be a waste of time."
As of press time, a spokesperson for Delaware Attorney General Kathy Jennings declined to comment. A representative for Bonta did not respond to a request for comment.