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Nonprofits lobbying OpenAI regulation later received company subpoenas

3 min read

Over the last few months, a handful of nonprofits have been knocking on legislators’ doors, urging tighter rules after OpenAI announced its shift to a for-profit structure. Those groups called the change “controversial” and tried to stall it. Then, almost out of the blue, OpenAI started serving subpoenas to many of the same organizations.

The timing seems linked to the company’s effort to defend itself against Elon Musk, who filed a lawsuit to block the transition. OpenAI says the subpoenas are just a way to collect information for its legal defense, but it’s hard not to wonder if the goal is also to quiet critics. The targeted groups have been outspoken opponents of the restructuring, and now they have to decide how to answer a summons that could reveal their internal tactics.

This clash of advocacy and litigation hints at a larger tug-of-war between regulation and corporate maneuvering that’s still playing out in the AI world.

In recent months, OpenAI has subpoenaed a wide range of nonprofits that have been critical of the company’s controversial for-profit restructuring. Ostensibly, the subpoenas are supposed to help OpenAI build its defense against Musk, who sued to stop the company’s transition. But in practice, recipients and legal experts say, they seem more like a campaign of intimidation with very real costs.

Online controversy has roiled OpenAI, with current and former employees publicly criticizing the company’s legal tactics. And at a time when AI companies are garnering unprecedented money and power, the subpoenas call attention to OpenAI’s ongoing departure from its nonprofit roots. “At what is possibly a risk to my whole career I will say: this doesn’t seem great.” OpenAI pointed to posts on X by its chief strategy officer, Jason Kwon, in lieu of providing a comment.

So far, at least seven nonprofits have revealed that they received subpoenas, including the San Francisco Foundation, Encode, Ekō, the Future of Life Institute, Legal Advocates for Safe Science and Technology, and the Coalition for AI Nonprofit Integrity. Many of the subpoenas seem to request not only answers to whether the nonprofits are involved with or funded by Musk in any way, but also every entity that has ever financially supported the nonprofits, as well as every one of the nonprofits’ documents and communications related to OpenAI’s own restructuring.

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The subpoenas felt like a curveball, especially given the timing that seems to line up with OpenAI’s clash with Elon Musk. The nonprofit leaders, however, say they were just trying to push for clearer rules. Tyler Johnston, who started the Midas Project, remembers a knock on his door on August 19th and a stack of legal papers.

He called it unsettling - a reminder that advocacy can draw legal eyes. OpenAI says it needs the documents to mount a defense against Musk’s lawsuit over its for-profit restructuring. Critics point out that the same subpoenas also hit groups that have publicly questioned that restructuring, so it’s unclear whether the move is purely defensive or also meant to quiet dissent.

The ripple effect on nonprofit lobbying is still up in the air, as is any precedent for future regulatory fights. Some observers worry the pressure could scare other organizations into staying silent on policy proposals, narrowing the pool of voices shaping AI governance. It’s a delicate balance.

What happens next will hinge on how courts read the subpoenas and how the nonprofits choose to respond.

Common Questions Answered

Why did OpenAI serve subpoenas to nonprofits that were lobbying against its for-profit restructuring?

OpenAI claims the subpoenas are necessary to help build its defense against Elon Musk's lawsuit, which aims to block the company's controversial for-profit transition. However, recipients and legal experts argue the legal requests appear more like a campaign of intimidation due to their timing and targeting of critical groups.

How does the timing of the subpoenas relate to OpenAI's legal battle with Elon Musk?

The timing of the subpoenas suggests a direct link to OpenAI's ongoing fight with Elon Musk, who sued to stop the company's transition to a for-profit model. Nonprofit leaders, like The Midas Project's Tyler Johnston who was served on August 19th, believe the legal actions were a direct response to their advocacy efforts against the restructuring.

What was the stated purpose of the nonprofits' lobbying efforts regarding OpenAI's restructuring?

The nonprofits were pushing lawmakers to tighten rules around OpenAI's shift to a for-profit model, which critics labeled as a controversial for-profit restructuring. Their lobbying aimed to curb what they perceived as problematic changes to the company's operational model and governance.

How did Tyler Johnston of The Midas Project describe receiving the OpenAI subpoena?

Tyler Johnston recounted the moment as unsettling, describing a knock at his door on August 19th with legal papers from OpenAI. He viewed it as a reminder that their advocacy work for clearer rules could attract significant legal attention and costs.