Elon Musk’s X is reportedly closing its San Francisco office

Elon Musk reportedly plans to quit X’s San Francisco office — weeks after announcing he would move the social media company’s headquarters to Texas in his clash with California Gov. Gavin Newsom over the state’s controversial new law on gender identity of students.

In a staff memo Monday, X CEO Linda Yaccarino said the office closing will happen “over the next several weeks” and described the decision as “the right thing for our company in the long term.”

“For those who live in San Francisco, I know this will affect all of you in different ways. Leadership is actively working on plans, including transportation options, for those directly affected,” Yaccarino added in the memo, according to a copy obtained by Fortune.

Yaccarino said X would move operations to new “primary locations” for its employees in the Bay Area, including an existing office in San Jose, as well as a new “engineering-focused shared space” in Palo Alto Alto designed to house Musk’s artificial intelligence startup xAI.

The billionaire also blasted living conditions in crime-ridden San Francisco as he announced the move.

“I’ve had enough of dodging gangs of violent junkies just to get in and out of the building,” Musk wrote on X on July 16.

The post was directed to X for comment.

Last month, Musk announced he would move the headquarters of X and Space X to Texas, calling Newsom’s decision “the last straw.”

The new law blocks school districts from requiring teachers to notify parents of changes in a student’s gender identity or sexual orientation without the child’s permission.

Musk said he made it clear to Governor Newsom about a year ago that laws of this nature would force families and companies out of California to protect their children.

Musk has repeatedly clashed with local authorities since he bought the company formerly known as Twitter for $44 billion in late 2022.

Last year, SRI Nine Market Square, the firm that owns the building that houses X headquarters on San Francisco’s Market Street, filed suit against Musk’s firm for missing rent payments.

The owner dropped the lawsuit in March.

Separately on Monday, Musk filed a new lawsuit against OpenAI and co-founders Sam Altman and Greg Brockman — just weeks after he dropped a similar lawsuit against the firm behind ChatGPT.

The case filed in California by Musk — who co-founded OpenAI in 2015 but later stepped down from its board amid disagreements over its direction — describes his dispute with Altman and others as a “textbook tale of altruism against greed”.

Musk’s lawyers allege that OpenAI and its leaders “intentionally tricked and tricked” him into funding the startup to the tune of more than $44 million in its early years.

The lawsuit alleges that Altman and his allies said they would develop advanced AI for the benefit of humanity — only to abandon that mission in order to enrich themselves and major investor Microsoft.