OpenAI Adopts Aggressive Corporate Playbook

A Grieving Family Faces Intrusive Demands

On September 12, lawyer Jay Edelson received what started as a standard legal document but quickly became something more alarming. Edelson is representing the parents of Adam Raine in a lawsuit against OpenAI, alleging that ChatGPT encouraged their 16-year-old son to take his own life. While OpenAI's initial legal inquiries were routine, such as requesting information about therapy Raine may have received, the requests soon escalated.

Edelson told reporters that the demands began to feel deeply invasive. According to documents reviewed for the original article, OpenAI requested that the family provide any videos taken at memorial services for their son. The company also wanted a list of everyone who attended or was invited to these services and the names of anyone who had cared for or supervised Raine over the past five years, a list that included friends, teachers, bus drivers, coaches, and even "car pool divers [sic]."

"Going after grieving parents, it is despicable," Edelson stated, confirming he objected to the requests. OpenAI and its law firm, Mayer Brown, did not respond to multiple inquiries about the case. In response to the lawsuit, OpenAI has announced plans for algorithmic and design changes, including new parental controls. However, according to Edelson, the company has yet to provide any documents in response to his own discovery requests.

From Conciliatory Lab to Corporate Aggressor

Corporations frequently employ tough legal tactics, but until recently, this wasn't OpenAI's public image. In the face of numerous lawsuits from publishers and authors over alleged copyright infringement, OpenAI generally maintained a conciliatory posture, focusing on legal arguments while simultaneously forging licensing partnerships with media organizations like The Atlantic to mitigate further legal action.

However, OpenAI is now clearly on the offensive. The days of being a nonprofit research lab that was unsure if it would ever have a product are long gone. Today, OpenAI is valued at $500 billion, making it the most valuable private company in the world. Its executives, led by CEO Sam Altman, have adopted an aggressive public stance, using social media and interviews to rebuke critics and antagonize competitors. Altman has publicly challenged The New York Times over its lawsuit and recently bristled at an investor's questions about the company's massive spending commitments.

As its influence grows, OpenAI faces increasing legal challenges. Just last week, seven new lawsuits were filed in California, all alleging that ChatGPT contributed to suicide or severe psychological distress.

Watchdogs and Nonprofits Under Legal Pressure

OpenAI's aggressive strategy has also been directed at its critics in the nonprofit sector. Nathan Calvin, general counsel at the small AI-policy nonprofit Encode, was served a subpoena from OpenAI at his home. Encode had been critical of OpenAI's attempt to restructure into a for-profit business, fearing it would compromise AI safety.

The subpoena, related to a lawsuit filed by Elon Musk, sought broad information, including any coordination with Musk and documents related to potential changes in OpenAI's structure. Over the past several months, OpenAI has subpoenaed at least seven nonprofit organizations in connection with the Musk lawsuit.

This legal pressure has had a punishing effect. Tyler Johnston of the Midas Project, an AI watchdog, reported being denied insurance policies due to the subpoena. Calvin noted that being subpoenaed creates a chilling effect, making others hesitant to engage with his organization. OpenAI's chief strategy officer, Jason Kwon, defended the actions in a series of posts, stating the subpoenas were a standard legal process to investigate the funding and control of organizations critical of the company. While aggressive discovery requests are common for large corporations, targeting small nonprofits is seen by some as oppressive.

The Corporate Evolution Driving the New Playbook

This new legal strategy reflects OpenAI's transformation into a corporate behemoth. The company's determination to shift from its nonprofit model was partly driven by the need to fundraise, with a potential $22.5 billion investment from SoftBank conditioned on the change. Last week, OpenAI completed its transition to a for-profit structure, with a board that includes Altman himself, signaling a clear focus on commercial ambitions.

Over the past year, OpenAI has morphed into a modern-day version of the Standard Oil octopus, extending its tentacles into numerous sectors. The company has launched or planned a social-media app, a web browser, in-app shopping, and a personal device. Altman's appearances on popular podcasts and the company's lobbying efforts underscore this commercial push. The original mission of building AGI to "benefit all of humanity" appears to have been reshaped to prioritize building the business.

In a recent post, Altman described the company's evolution in two parts: first, developing powerful AI, and now, making a "dent in the universe" by getting its products into the world. The OpenAI of today resembles Meta or Google far more than the research lab it once was. First came the research; now comes the business.