The California Attorney General conducted an investigation into OpenAI's recapitalization plan and secured a memorandum of understanding ensuring charitable assets are used for their intended purpose, safety is prioritized, and OpenAI remains in California. The AG will not oppose the plan and will monitor ongoing adherence to these commitments.
OpenAI must use charitable assets for their intended purpose, prioritize safety, and remain in California, with the California Attorney General monitoring compliance.
In-house legal teams should review all vendor, customer, and partnership agreements with OpenAI, particularly those involving charitable contributions, safety-critical deployments, or significant financial transactions. Specific clauses to scrutinize include representations and warranties regarding the use of funds/assets (especially if labeled charitable or mission-driven), safety protocols and compliance obligations, and any geographic or operational restrictions. Given the MOU's focus on charitable asset use and safety prioritization, contracts may need amendments to explicitly reference adherence to OpenAI's documented charitable mission and safety frameworks, and to include audit rights or reporting requirements aligned with the AG's monitoring authority. For agreements involving recapitalization or major investment, ensure terms do not conflict with OpenAI's commitments to remain in California and prioritize safety over profit.
Entity
OpenAI
Industry
TechnologyOfficial Press Release
https://oag.ca.gov/news/press-releases/attorney-general-bonta-issues-statement-openai%E2%80%99s-recapitalization-plan
Final Executed MOU Between OpenAI and California AG re Notic
https://oag.ca.gov/system/files/attachments/press-docs/Final%20Executed%20MOU%20Between%20OpenAI%20and%20California%20AG%20re%20Notice%20of%20Conditions%20of%20Non-Objection%20%2810.27.2025%29%20%28Signed%20by%20OpenAI%29%20%28Signed%20by%20CA%20DOJ%29.pdf
California Attorney General Enforcement Page
https://oag.ca.gov/privacy/privacy-enforcement-actions
"OpenAI"
A coalition of 12 state attorneys general, led by Colorado AG Phil Weiser, obtained a temporary restraining order from a federal court in California to halt the proposed $110 billion merger of Warner Bros. Discovery, Inc. by Paramount Skydance Corporation. The lawsuit alleges the merger violates Section 7 of the Clayton Act by substantially lessening competition in film distribution, anticipated blockbuster film distribution, and licensing cable TV channels.
The California Privacy Protection Agency (CalPrivacy) joined a coalition of 18 Attorneys General and state agencies in opposing the proposed SECURE Data Act, a federal privacy bill that would preempt stronger state privacy laws like the CCPA. The coalition argues the bill would weaken consumer privacy protections, limit enforcement remedies, and undermine California's Delete Request and Opt-out Platform (DROP).
$12.8M
California Attorney General Rob Bonta, along with multiple district attorneys and the California Privacy Protection Agency, announced a $12.75 million settlement with General Motors for illegally selling hundreds of thousands of Californians' location and driving data to data brokers Verisk and LexisNexis without notice or consent. The settlement includes the largest CCPA penalty to date, a five-year ban on selling driving data to consumer reporting agencies, and requirements to delete retained data and implement a robust privacy program.
The California Privacy Protection Agency Board voted to support two bills (AB 1542 and SB 1106) and took a 'support if amended' position on a third bill (AB 883). These bills aim to strengthen privacy protections by expanding sensitive data protections, improving deletion rights under the Delete Act, and providing expedited deletion for elected officials and judges.
The California Privacy Protection Agency sent a letter to Congress opposing the SECURE Data Act, a federal bill that would preempt state privacy laws like the CCPA and Delete Act. The letter argues the bill would eliminate rights for 40 million Californians, including the DROP platform and opt-out preference signal requirements, and urges Congress to set a floor rather than a ceiling on privacy protections.
California Attorney General Rob Bonta, joined by attorneys general from seven other states, filed a lawsuit to block the $6.2 billion merger between Nexstar Media Group and Tegna Inc. The lawsuit alleges the merger violates Section 7 of the Clayton Act by reducing competition in local TV markets, leading to higher prices, less local news, and job losses.