Elon Musk has offered to withdraw his $97.4 billion bid for OpenAI’s nonprofit if the company’s board agrees to stop its transition into a for-profit entity. In a court filing on Wednesday, Musk’s lawyers stated that if OpenAI “preserves the charity’s mission,” he will step back from the acquisition attempt. Otherwise, they argued, OpenAI’s nonprofit should be compensated at market value.
Key Points
- Musk’s lawyers say he will withdraw his bid if OpenAI halts its transition to a for-profit entity.
- OpenAI CEO Sam Altman has dismissed the offer, calling it an attempt to slow down a competitor.
- Musk’s lawsuit against OpenAI claims it abandoned its nonprofit mission.
- OpenAI is currently restructuring into a public benefit corporation.
Musk, who co-founded OpenAI in 2015 but left in 2018, has been increasingly vocal about what he sees as OpenAI’s shift away from its original mission. The company was initially structured as a nonprofit but pivoted to a “capped-profit” model in 2019, allowing investors to earn returns while maintaining an overarching nonprofit governance. OpenAI is now restructuring into a public benefit corporation, a move Musk is challenging through an ongoing lawsuit.
OpenAI CEO Sam Altman has dismissed Musk’s bid, calling it an attempt to derail a competitor. Altman said, “He’s probably just trying to slow us down.” OpenAI’s legal team has also pushed back, describing Musk’s actions as an improper attempt to interfere with a rival AI company.
This legal battle comes as Musk’s AI startup, xAI, competes with OpenAI in the race to develop cutting-edge artificial intelligence. Musk has previously argued that OpenAI’s shift toward a for-profit model contradicts its founding principles and that its deep partnership with Microsoft raises questions about its independence.
Despite Musk’s offer, OpenAI appears intent on moving forward with its restructuring, setting the stage for continued legal and strategic battles between the two sides.