Key points
- SpaceXAI was the only company that didn't answer the Council
- OpenAI, Google, and Anthropic agreed after subpoena threats
- The Oct. 5 hearing will also review local AI bills
The New York City Council issued a subpoena on Monday requiring Elon Musk's SpaceXAI (SPCX) to testify under oath at an Oct. 5 hearing on the risks of artificial intelligence. SpaceXAI was the only one of five invited AI companies that hadn't responded to the Council, according to a statement from Speaker Julie Menin.
Anthropic, OpenAI, Google, and Meta (META) have agreed to send representatives to testify. Aside from Meta, the companies confirmed only after the Council threatened to subpoena them, the statement said.
The hearing will be held by the Council's Committee of the Whole, which brings together all 51 members. The investigation will assess whether "fast-emerging risks to public safety, cybersecurity, economic stability, privacy, consumers and businesses warrant immediate legislative action to protect New Yorkers," Menin wrote in a letter to Musk, CNBC reported.
How the other companies got to yes
Menin sent letters to the five companies between Sept. 15 and 17 asking them to appear voluntarily. Meta agreed. By the Council's Sept. 25 deadline, Google and Anthropic had declined, and Menin authorized subpoenas for all four remaining companies to take effect at 9 a.m. on Monday.
OpenAI and Google agreed to appear on Sunday. Anthropic confirmed late Sunday night, "just hours before the subpoena was due to be served," the Council said. SpaceXAI still hadn't responded, and Menin issued its subpoena Monday morning.
"Leading experts and AI executives themselves are warning about the potentially grave risks of rapidly advancing AI, and governments have a responsibility to act," Menin said. "Given the high stakes, these firms owe it to the public to come before the Council, answer our questions, and provide input on our proposed legislation under oath."
Menin had invited the chief executives, including Musk, but a Council spokesperson said other representatives will testify for the companies that agreed, amNewYork reported. SpaceXAI didn't immediately respond to a request for comment from City & State New York.
What happens if SpaceXAI doesn't show
The Council cited Section 29 of the city charter, which lets the Council investigate city affairs and take sworn testimony, and a Council rule that authorizes subpoenas. If SpaceXAI doesn't comply, the Council may ask the New York State Supreme Court to enforce the subpoena, the speaker's team told City & State.
The bills under review
The hearing will also review legislative proposals Menin unveiled last week. They include a whistleblower program that could pay people a share of penalties recovered from companies that break the law, a right for some people harmed by AI agents to sue, and requirements for third-party validation and human kill switches for AI systems sold or used in the city.
The Council said the hearing follows "reports that rogue AI agents have already inflicted damage to government databases." Its release linked to reporting on an OpenAI agent that broke into an Australian Medicare portal.
SpaceXAI is already facing lawsuits over Grok. The city of Baltimore has accused the company of deceptive trade practices for marketing Grok's image tool as generally safe, and teenagers have filed a proposed class action over sexualized images Grok generated of them, CNBC reported.
SpaceX merged with Musk's xAI in February, and the combined company went public in June. SpaceX shares closed at $145.49 on Monday, down 2.1%.
