Elon Musk Offers To Drop $97B OpenAI Bid If It Stays A Non-Profit.
Billionaire's legal representatives have stated that the offer will be rescinded if the organization he co-founded ten years ago continues to uphold the charity's mission.
Elon Musk has announced that he will retract his $97 billion offer for OpenAI if the organization continues to operate as a non-profit entity. The billionaire's legal representatives have indicated that the proposal will be rescinded if the company he co-founded ten years ago maintains its commitment to its charitable objectives.
“If OpenAI, Inc’s Board is prepared to preserve the charity’s mission and stipulate to take the ‘for sale’ sign off its assets by halting its conversion, Musk will withdraw the bid,” lawyers for the billionaire said in a filing to a California court on Wednesday. “Otherwise, the charity must be compensated by what an arms-length buyer will pay for its assets.”
Musk, along with a consortium of investors, presented their proposal earlier this week, marking a new development in the ongoing conflict with the artificial intelligence firm he co-founded ten years ago.
OpenAI is governed by a non-profit board dedicated to its foundational mission of developing "better-than-human" artificial intelligence for the benefit of the public. As it has evolved into a rapidly expanding enterprise, the organization disclosed plans last year to officially modify its corporate structure.
Elon Musk, along with his AI venture xAI and a group of investment firms, is seeking to acquire the non-profit's controlling interest in the for-profit subsidiary of OpenAI.
In response to this unsolicited offer, OpenAI's CEO, Sam Altman, promptly dismissed the proposal via a social media post and informed attendees at an AI summit in Paris that the company is not available for acquisition. Bret Taylor, the chair of OpenAI's board, reiterated these sentiments during an event on Wednesday.
Musk and Altman were instrumental in founding OpenAI in 2015 and subsequently vied for leadership roles within the organization before Musk stepped down from the board in 2018. Their relationship has been marked by a prolonged and contentious rivalry, which has included Musk initiating legal action, withdrawing it, and then re-filing a lawsuit in 2024.
RELATED: OpenAI Rejects Elon Musk's $97 Billion Takeover Bid.
Musk once again expressed his disapproval of Altman's leadership during a video conference at the World Government Summit held in Dubai, United Arab Emirates. He likened the situation to a non-profit organization dedicated to preserving the Amazon rainforest transforming into a "lumber company that cuts down trees." In response, Altman has consistently argued that Musk's legal actions against OpenAI stem from his position as the founder of a rival startup.
Musk has requested that a federal judge in California prevent OpenAI from transitioning to a for-profit model, citing allegations that include breach of contract and antitrust violations. While the judge has shown skepticism regarding some of Musk's claims, a decision has yet to be rendered.
Elon Musk’s ultimatum to withdraw his $97 billion bid for OpenAI if it remains a non-profit reflects a troubling disregard for the organization’s original mission. His attempt to impose financial interests over the charity’s purpose undermines the integrity of the company he co-founded.
Musk's ongoing legal actions and rivalry with OpenAI's leadership further highlight a pattern of using his wealth and influence to prioritize personal gains over the broader public good. Instead of supporting responsible AI development, Musk’s approach risks derailing the foundational goals of OpenAI, potentially jeopardizing its commitment to serving the public interest.
