The Scoop
OpenAI is expanding its bitter legal dispute with Elon Musk to sweep in Hollywood mogul Ari Emanuel and his talent agency WME.
OpenAI’s lawyers have instructed the firm to preserve communications about the ChatGPT-maker and explain the work it has done for Musk and his lawyers, according to a letter an OpenAI lawyer sent to WME’s chief legal officer on Tuesday. The letter, obtained by Semafor, also directs WME to disclose whether it is working with Meta or other OpenAI competitors, claiming Musk is coordinating attacks on the company alongside Meta and its CEO Mark Zuckerberg.
The latest twist in the embittered legal feud follows Semafor’s reporting that press releases sent by Musk lawyer Marc Toberoff — which used to come from a PR firm — are now being sent by WME. The relationship between Emanuel and Musk is informal, but “Ari is team Elon,” a source close to WME said.
Emanuel is a longtime investor and associate of Musk. He played roles in Musk’s takeover of Twitter and his bid for OpenAI last year, and Musk briefly sat on the board of WME parent Endeavor.
OpenAI declined to comment. WME and a representative for Musk did not respond to a request for comment.
Know More
The legal fight is a product of years of animosity between the tech billionaires who together founded OpenAI and currently sit at the forefront of AI development.
Musk is seeking more than $150 billion in damages from OpenAI and Microsoft, arguing that OpenAI defrauded him as a donor by restructuring the business away from its nonprofit roots. The trial is set to begin at the end of the month, in what could ultimately reshape the entire AI landscape.
Musk, who runs OpenAI competitor xAI, is seeking the ouster of Sam Altman as CEO and the reversal of OpenAI’s restructuring, which would force it to operate as a nonprofit. Such a decision by the court would stifle its rumored plans to list on the public market and jeopardize its commercial ambitions.